Bitcoin whales quietly embrace BlackRock ETF following SEC rule change

Large Bitcoin holders, or whales, are increasingly converting their self-custodied Bitcoin into BlackRock's iShares spot Bitcoin ETF (IBIT), with BlackRock facilitating over $3 billion in these conversions. Robbie Mitchnick, BlackRock’s head of digital assets, noted that whales are seeking the convenience of integrating their exposure into existing financial advisor or private bank relationships. This trend is partly attributed to a recent US SEC rule change allowing in-kind creations and redemptions for crypto ETFs, which makes large-scale conversions more efficient and tax-friendly for authorized participants. BlackRock's IBIT has become highly successful, surpassing $88 billion in assets under management. This institutionalization challenges the long-held self-custody ideal of "not your keys, not your coins," signaling a shift in investor behavior toward more conventional, custodial ownership forms, even as ETFs open doors to previously inaccessible institutional participation.

(Source：Cointelegraph)