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BlackRock: Security Fears Are Driving Bitcoin Whales Into IBIT
BlackRock's Robbie Mitchnick told Barron's demand to swap directly held bitcoin for IBIT shares is at its highest yet, with "security and peace of mind" the top reason as kidnappings and hacks rise.
Brief
BlackRock says large bitcoin holders are swapping self-held coins for shares of its iShares Bitcoin Trust, IBIT, at a record pace. Robbie Mitchnick, its head of digital assets, told Barron's that kidnappings and hacks drive clients, with safety and peace of mind as the top reason. Swaps happen in kind, meaning holders deliver bitcoin through intermediaries such as Galaxy Digital, Talos and Virtu and receive new IBIT shares without first selling. Barron's put the volume at $3.6 billion, while Mitchnick told Bloomberg in August that such swaps topped $5 billion. The SEC allowed in-kind creations in July 2025, and BlackRock's minimum now ranges from $1 million to $2 million.
Why it matters: It signals that security worries are pushing large holders away from self-custody and toward regulated fund structures, a shift that cuts against bitcoin's original no-bank ethos.
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