BlackRock has processed over $3 billion in Bitcoin conversions for large holders through its iShares Bitcoin Trust ETF. According to The Crypto Basic, Robbie Mitchnick confirmed these transactions during an October 2025 statement. The Head of Digital Assets at BlackRock noted that wealthy investors increasingly prefer maintaining Bitcoin exposure through traditional financial advisors.
The conversions began accelerating after the SEC approved in-kind redemption mechanisms for Bitcoin ETFs. Mitchnick declined to specify the exact number of conversions completed. Some clients transferred only 20 percent of their Bitcoin holdings while others moved entire positions into ETF products.
Bitcoin Magazine reports that IBIT recently surpassed $100 billion in assets under management. The fund generates approximately $244.5 million in annual revenue. This performance exceeds the 25-year-old iShares Russell 1000 Growth ETF in both growth speed and profitability.
Large Holders Prioritize Regulated Custody Solutions
The conversions represent a shift in how wealthy Bitcoin holders manage their digital assets. Traditional custody involves private key management and security risks including potential loss or theft. ETF products transfer these responsibilities to regulated custodians like Coinbase Prime.
BlackRock's Bitcoin ETF reached 700,000 BTC holdings worth $75.5 billion in July 2025. The fund now accounts for more than 55 percent of total Bitcoin held in US spot ETFs. This concentration demonstrates institutional preference for established financial service providers.
Bitwise Asset Management confirms receiving daily inquiries from investors seeking to transfer private Bitcoin holdings into managed portfolios. Liquidity provider Galaxy has facilitated similar transfers according to industry reports. The transactions reflect demand for estate planning tools and leverage options unavailable through self-custody.
Traditional Finance Infrastructure Absorbs Digital Asset Holdings
The whale conversion trend reshapes Bitcoin's ownership structure and market dynamics. ETF products provide exposure through standard brokerage accounts without direct cryptocurrency management requirements. This integration removes operational barriers for pension funds and insurance companies considering Bitcoin allocations.
IBIT overtook Coinbase Global's Deribit platform to become the largest venue for Bitcoin options in recent quarters. The fund's success positions BlackRock as the dominant player in cryptocurrency investment products. Traditional financial institutions now view Bitcoin as a permanent portfolio component rather than speculative allocation.
On-chain analytics from Chainalysis and Glassnode indicate whale transfers to ETF custodians have increased throughout 2025. Data shows a 15 to 20 percent decline in long-term self-custody wallets over the past year. High-net-worth individuals appear to value regulatory oversight and convenience over the decentralization principles Bitcoin originally embodied.
The development creates parallel liquidity pools operating within existing financial market infrastructure. Traditional brokers can offer Bitcoin exposure without establishing cryptocurrency custody capabilities. However, concentration of Bitcoin holdings among few institutional custodians introduces systemic risks if these entities face operational or regulatory challenges.