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cryptobreaking Bitcoin Whales Invest Billions in ETFs, Including BlackRock's IBIT
As institutional interest in cryptocurrency grows, major asset managers are shifting strategies to incorporate Bitcoin through regulated products like ETFs. Recently, large Bitcoin holders-commonly known as whales-have increasingly transferred their holdings into exchange-traded funds, seeking more convenient and regulated access to their digital assets. This move signals a significant evolution in the way high-net-worth investors manage their crypto portfolios amid evolving market trends and regulatory changes.
BlackRock has facilitated over $3 billion in conversions of Bitcoin into its spot Bitcoin ETF, IBIT. Major Bitcoin whales are increasingly transferring their holdings into ETFs for better integration into traditional financial systems.
Recent SEC rule changes allowing in-kind redemptions have made large-scale conversions more efficient and tax-friendly for institutional investors. BlackRock's IBIT has become the fastest ETF to surpass $70 billion in assets under management, now exceeding $88 billion.
On-chain data suggests a potential shift from self-custody to institutionalized Bitcoin holdings, possibly impacting investor behavior.
Institutional Shift: Bitcoin Whales Moving into ETFs In a notable trend, some of the most prominent early Bitcoin holders-often called whales-are increasingly transitioning their holdings into exchange-traded funds (ETFs). Asset management giants like BlackRock are actively encouraging this shift, with the asset manager reporting that over $3 billion worth of Bitcoin has already been converted into their iShares spot Bitcoin ETF (IBIT).
Robbie Mitchnick, BlackRock's head of digital assets, explained that many whales now favor the convenience of holding Bitcoin exposure through traditional financial advisors or private banks. This approach makes it easier to manage wealth within familiar financial frameworks, while still maintaining exposure to Bitcoin's potential growth.
The recent approval by the U.S. Securities and Exchange Commission (SEC) for in-kind creation and redemption of crypto ETFs has further facilitated large conversions.
#WhalesAlert #Bitcoin #Investsmart #Gate