BlackRock alone processes $5B in shift from spot BTC holdings to ETFs

Bitcoin holders have been moving large amounts from personal wallets and exchanges into spot ETFs, Bloomberg reported. BlackRock’s spot BTC ETF, IBIT, has processed more than $5 billion in such conversions so far, up sharply from $3 billion in October last year. Bloomberg said Bitwise’s BITB saw a similar trend, while Morgan Stanley’s MSBT took in about 5% to 7% of total assets under management through spot BTC conversions. The shift appears to reflect asset managers sharply lowering minimum thresholds for spot conversions, along with investor demand to reduce the risks tied to self-custody, including hacking and private-key loss, and potential capital gains tax savings from converting BTC into ETFs depending on the situation.