Key takeaways
- Bitcoin whales executed $3 billion in ETF trades through the BlackRock Spot Bitcoin ETF using in-kind creation mechanisms.
- These mechanisms allow for the direct conversion of Bitcoin holdings into ETF shares, similar to portfolio trades in bond markets.
Share this article
Bitcoin whales executed around $3 billion in ETF trades through BlackRock’s $IBIT, a spot Bitcoin ETF, using portfolio trading mechanisms that offer significant portfolio returns, Bloomberg reported today. Trading allows large Bitcoin holders to convert their holdings directly into ETF shares through custom creation processes.
BlackRock has been facilitating these in-kind creations for $IBIT, allowing Bitcoin whales to seamlessly integrate their holdings into traditional financial portfolios. The structure reflects portfolio transactions commonly used in bond markets, where assets are exchanged directly rather than through cash transactions.
The wallet trading mechanism provides Bitcoin whales with benefits including increased liquidity and tax efficiency. These customized ETF creation methods have gained traction in crypto markets as institutional investors seek regulated investment vehicles for their digital asset holdings.
BlackRock’s Bitcoin ETF has seen increased institutional interest as traditional financial firms adapt to cryptocurrency integrations through ETF structures. The asset management giant has been expanding its cryptocurrency offering in response to evolving investor demands for regulated exposure to Bitcoin.
