BlackRock just made it way easier for big-time bitcoin holders to move from self-custody to its ETF product. The firm slashed the minimum for in-kind BTC-for-ETF share swaps by 25x. According to Bloomberg, investors can now hand over bitcoin directly in exchange for ETF shares—no need to cash out first. On Wall Street, this in-kind mechanism is getting more standardized and accessible by the day.

What Changed

Cutting the minimum swap size by 25x makes the in-kind process a lot more flexible for folks who want to move into an ETF without touching fiat. This setup lets new ETF shares be created using contributed bitcoin, not dollars.

How In-Kind Works for Bitcoin ETFs

In-kind means you can swap your BTC straight for ETF shares, skipping any cash settlement. Bloomberg reports this is aimed at holders who’d rather deposit bitcoin than cash when creating or redeeming ETF baskets.

IBIT’s Massive In-Kind Volume

Per Bloomberg, BlackRock has already pushed over $5 billion through its IBIT spot bitcoin ETF using this in-kind model—showing just how important this route is becoming for institutional players.