BlackRock cuts IBIT bitcoin swap minimum to $1M

BlackRock has lowered the minimum Bitcoin amount required for eligible holders to convert their assets into shares of the iShares Bitcoin Trust (IBIT) to $1 million, down from the previous $25 million threshold.

Why the change matters

The reduction represents a 96 % decrease, expanding access to the in‑kind conversion process for a broader group of wealthy investors and institutions.

How in‑kind conversions work

Eligible holders transfer Bitcoin to the ETF structure through authorized participants and receive IBIT shares that reflect comparable exposure. This process avoids the need to sell Bitcoin for cash before buying ETF shares.

Scale of activity

• IBIT has processed more than $5 billion in Bitcoin swaps, according to BlackRock’s head of digital assets.
• The fund held roughly $60.65 billion in net assets as of late August.
• Each creation basket contains about 22.65 Bitcoin, valued at approximately $1.79 million at that time.

Comparison with other providers

Bitwise has made a similar adjustment, lowering its conversion minimum from $100 million to $3 million.

Regulatory backdrop

The U.S. SEC approved in‑kind creations and redemptions for spot crypto ETFs in July 2025, allowing funds to use Bitcoin directly rather than cash for share creation.

Investor considerations

While in‑kind conversions can reduce trading spreads and may help avoid immediate capital‑gains tax, the tax outcome depends on individual circumstances and jurisdiction. Holders also give up direct control of the underlying Bitcoin, as shares cannot be withdrawn for personal use.