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Robbie Mitchnick of BlackRock lowers the minimum bitcoin threshold to accelerate investor shifts from self-custody to spot ETFs.

Robbie Mitchnick, head of digital assets at BlackRock, announced that the company has significantly lowered the minimum bitcoin required for a direct swap into its IBIT spot BTC ETF. The threshold was reduced from $25 million to $1 million in July, making it easier for bitcoin whales to move holdings from private wallets into the fund without triggering immediate capital gains taxes. This shift is driven by increasing concerns over crypto security, including hacks and custody failures. Mitchnick noted that external events like kidnappings and ransom attacks motivate investors to seek the security of a mainstream fund. BlackRock's IBIT has already processed over $5 billion in these swaps, a far jump from the $3 billion reported last October. As bitcoin prices reach new highs, the administration's role in expanding market access continues to be a factor in the growth of the $60 billion bitcoin fund, which remains one of the fastest-growing ETFs in any asset class.

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