Why Bitcoin Whales Are Increasingly Swapping Their BTC for ETF Shares: Bloomberg
Large Bitcoin holders are converting BTC into spot ETF shares via in-kind creations for easier collateralization and estate planning.Summary
Large Bitcoin holders, or "whales," are increasingly swapping their off-platform BTC for shares in spot Bitcoin ETFs through in-kind creation mechanisms, following a July 2025 SEC policy shift allowing in-kind creations and redemptions for crypto ETPs. This process is generally tax-neutral as no sale is recorded, allowing holders to maintain exposure while moving assets into brokerage accounts. The primary motivations cited are the ability to borrow against the ETF shares as collateral and the ease of including these assets in estate planning. Major issuers like BlackRock have already facilitated over $3 billion in such conversions, with other firms like Bitwise reporting daily inquiries from clients seeking to integrate their holdings into traditional wealth platforms.
(Source：CoinDesk)