BlackRock has lowered the minimum amount required for eligible Bitcoin holders to convert BTC directly into shares of its iShares Bitcoin Trust ETF (IBIT) from $25 million to $1 million, widening access to a conversion process that has already handled more than $5 billion in Bitcoin, according to BlackRock Head of Digital Assets Robbie Mitchnick.

The transactions allow eligible holders to move Bitcoin from self-custody into an ETF structure while maintaining exposure to Bitcoin’s price.

Importantly, the $5 billion represents conversions of existing Bitcoin rather than $5 billion of new money flowing into IBIT.

BlackRock Cuts the IBIT Threshold From $25M to $1M

BlackRock initially required approximately $25 million for Bitcoin-to-IBIT in-kind conversions. The new $1 million minimum reduces that threshold by 96%.

The change makes the process accessible to a broader group of large Bitcoin holders, including smaller institutions, family offices and wealthy investors that may not have met the previous $25 million requirement.

Mitchnick said BlackRock intends to continue lowering the barrier over time. Notably, the conversion process is still relatively manual and can take more than a week, meaning it is not yet as simple as buying ETF shares through a brokerage account.

Table 1. BlackRock IBIT In-Kind Conversion Growth

Based on the reported figures, conversions have increased by at least $2 billion since October, even before considering how the lower minimum could affect activity going forward.

More Than $5B in Bitcoin Has Already Moved Into IBIT

More than $5 billion worth of Bitcoin has been converted directly into IBIT shares through the in-kind process.

Instead of selling BTC for cash and then purchasing ETF shares, an eligible holder can work through approved intermediaries to transfer Bitcoin into the fund structure and receive IBIT shares in return. Only authorized participants can directly create or redeem IBIT baskets, so individual holders generally cannot send Bitcoin directly to BlackRock.

For some large holders, the attraction is moving from self-custody into a regulated investment product. Mitchnick has pointed to concerns including custody failures and physical security risks as reasons some Bitcoin holders are choosing the ETF structure.

IBIT Has Grown to More Than $62B in Assets

The conversion program is expanding alongside the broader growth of BlackRock’s Bitcoin ETF.

As of this writing, IBIT held about $62.52 billion in net assets and had approximately 1.385 billion shares outstanding, according to BlackRock’s iShares data. The fund charges a 0.25% sponsor fee.

That means the more than $5 billion converted through the in-kind program is equal to roughly 8% of IBIT’s current net assets.

Bitwise Is Also Lowering Its Conversion Barrier

BlackRock is not the only ETF issuer trying to make in-kind conversions more accessible.

Bitwise reportedly lowered its own minimum from $100 million to $3 million. The change represents a 97% reduction and suggests that Bitcoin ETF issuers are competing for holders who already own significant amounts of BTC rather than only competing for new cash investment.

The trend became possible after the U.S. Securities and Exchange Commission (SEC) approved in-kind creations and redemptions for crypto exchange-traded products in late July 2025.

As these systems become more standardized, Bitcoin holders have another route for moving between direct ownership and regulated ETF exposure without first going through a separate cash transaction.

What Comes Next

The lower $1 million threshold gives BlackRock access to a much larger pool of Bitcoin holders, but the next question is whether it leads to a meaningful acceleration in conversions.

IBIT had already processed more than $5 billion before the latest reporting, while its net assets stood above $62 billion at the start of September. Future conversion figures will show whether smaller eligible holders are making significant use of the lower minimum.

The development also adds another layer to competition among Bitcoin ETF issuers as they build services around investors who already hold BTC rather than relying solely on new ETF buyers.

What this means for you: BlackRock is making it easier for large Bitcoin holders to move BTC into an ETF wrapper, but these conversions should not be confused with new Bitcoin ETF inflows.