TLDR BlackRock cut its Bitcoin-to-IBIT conversion minimum from $25 million to $1 million in July 2026. Bitwise lowered its own threshold from $100 million to $3 million. IBIT has processed mo
BlackRock has lowered the minimum amount of Bitcoin needed for large holders to swap into shares of its iShares Bitcoin Trust. The new threshold is $1 million, down from $25 million. The change took effect in July 2026.
The 96% cut opens the conversion option to a wider group of wealthy investors. Before this change, only the largest holders could use the process.
Bitwise made a similar move. The asset manager cut its own minimum from $100 million to $3 million, according to a Bloomberg report.
Neither number reflects what a regular investor needs to buy ETF shares through a brokerage account. Those purchases remain open to anyone at normal share prices.
The conversions use what is known as an in-kind creation process. A holder transfers Bitcoin into the ETF structure and receives shares in return.
This method skips the step of selling Bitcoin for cash and then buying ETF shares separately. It can lower trading costs and cut out extra steps.
Robbie Mitchnick, who leads digital assets at BlackRock, told Bloomberg the fund has processed more than $5 billion through these swaps. That figure was near $3 billion in October.
These transactions should not be treated as new money entering the fund. They simply move existing Bitcoin holdings into ETF form.
BlackRock’s fund page showed the trust holding about $60.65 billion in net assets as of August 25. The fund charges a 0.25% sponsor fee.
Each creation basket held about 22.65 Bitcoin that day, valued near $1.79 million. Basket values shift as Bitcoin’s price moves.
Only authorized participants can create or redeem shares directly with the trust. Most Bitcoin holders need a broker or trading desk to complete a swap.
The U.S. Securities and Exchange Commission approved in-kind creations and redemptions for spot crypto funds in July 2025. Before that ruling, funds could only use cash.
Bloomberg reported the swaps may help some holders avoid capital gains taxes tied to selling Bitcoin outright. The actual outcome depends on the investor, the intermediary, and the legal structure used.
BlackRock has now done $5b of tax deferred bitcoin to ETF swaps, which can now be done for as little as $1mil.. “It’s going to keep growing because we keep expanding the access,” said Robbie Mitchnick, head of digital assets at BlackRock. “People see things happen in the outside… https://t.co/lnhFLeVklM
— Eric Balchunas (@EricBalchunas) August 25, 2026
Mitchnick said some Bitcoin owners reconsider holding their own coins after hearing about hacks and other attacks on crypto holders. He said people see events happen elsewhere and decide to move some holdings into the fund instead.
An ETF removes the need to manage private keys or hardware wallets. Investors give up direct control over their coins in exchange for shares tied to Bitcoin’s price before fees.
Lower minimums could bring more large holders into the conversion process going forward. Access will still depend on brokers, trading desks, and each investor’s own tax situation.
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