Large Bitcoin holders, often called whales, are increasingly
moving their holdings into exchange-traded funds. Asset managers, including
BlackRock, are seeking to attract these early investors.
Robbie Mitchnick, BlackRock’s Head of Digital Assets, told
Bloomberg that the company has facilitated more than $3 billion worth of
Bitcoin conversions into its iShares spot Bitcoin ETF, as self-custodied
Bitcoin declines for the first time in 15 years.
Institutional Investors Benefit from In-Kind Crypto ETF
Adjustments
Mitchnick said that after years of self-custody, many whales
now prefer the convenience of maintaining their Bitcoin exposure through
traditional financial institutions. This approach lets them manage their wealth
via existing advisers and access broader investment and lending services.
Digital
assets meet tradfi in London at the fmls25
Mitchnick partly attributed the trend to a recent rule
change by the US Securities and Exchange Commission. The adjustment allows
in-kind creations and redemptions for crypto ETFs, enabling authorized
participants to exchange ETF shares directly for Bitcoin instead of cash — a
process that is more efficient and potentially more tax-friendly for
institutional investors.
📉 Bitcoin whales quietly embrace BlackRock ETF following SEC rule change. Bitcoin’s biggest holders are moving billions into ETFs like BlackRock’s IBIT, signaling a new phase of institutional adoption.
— Crypto News 📰 (@btc_af) October 21, 2025
Bitcoin Integration Grows as Self-Custody Declines
The trend highlights Bitcoin’s deeper integration into the
traditional financial system and a shift away from the self-custody ideal of
“not your keys, not your coins.” Analyst Willy Woo noted that the decline in
self-custodied Bitcoin reflects changing investor behavior as ETFs attract
greater institutional participation and influence early whales.
Regulated Crypto ETFs Expand in Costa Rica, Australia,
and UK
Costa Rica’s bank, Banco
Nacional, is preparing to launch a spot Bitcoin ETF, providing regulated
crypto exposure to local investors. The ETF, priced in USD with a $100 minimum,
will be the country’s first crypto investment product offered through the
traditional banking system, amid a developing regulatory framework.
Similar developments have occurred internationally. Australia’s
ASX recently launched its first Bitcoin ETF, the VanEck Bitcoin ETF, which
invests in the US-listed VanEck Bitcoin Trust, reflecting growing investor
interest in regulated crypto products.
In the UK, the Financial Conduct Authority approved
two WisdomTree crypto ETPs for the London Stock Exchange, with 21Shares
preparing its own instrument following regulatory clearance.
This article was written by Tareq Sikder at www.financemagnates.com.
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