BlackRock has reduced the minimum value required for eligible investors to convert Bitcoin into shares of its iShares Bitcoin Trust (IBIT) from $25 million to $1 million. The change, implemented in July 2026 and reported in late August, represents a 96% reduction in the threshold for in-kind creations.
In-kind conversion allows authorized participants and eligible holders to exchange Bitcoin directly for IBIT shares (or the reverse) without first selling the cryptocurrency for cash and then buying ETF shares. This structure can help avoid an immediate taxable event for those moving exposure into the fund. Transactions still flow through approved intermediaries, as only authorized participants create or redeem IBIT baskets.
BlackRock’s head of digital assets, Robbie Mitchnick, has noted that cumulative in-kind creations through IBIT have exceeded $5 billion. Demand for such conversions has grown as some holders seek ETF exposure rather than continued self-custody, citing concerns around security incidents. Bitwise has made a parallel adjustment, lowering its comparable minimum from $100 million to $3 million.
IBIT remains the largest U.S. spot Bitcoin ETF by assets. The lower barrier expands access beyond the largest institutions and market makers to a broader set of wealthy investors, family offices and mid-sized participants, while ordinary retail purchases of IBIT shares through brokerages remain unchanged and have no such minimum.
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The adjustment reflects continued maturation of Bitcoin ETF infrastructure and growing institutional plumbing for moving between self-custody and regulated products. Investors evaluating custody options should carefully weigh convenience against control and maintain strong security practices for any remaining self-held assets.
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By lowering the in-kind conversion threshold, BlackRock has made it easier for a wider group of Bitcoin holders to transition into ETF shares, potentially supporting greater liquidity and tighter tracking for the industry’s leading spot Bitcoin product.