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BlackRock has lowered the minimum threshold for private in-kind creations of its spot Bitcoin ETF (IBIT) to $1 million, according to Nate Geraci, president of ETF Store. Geraci said the move has already facilitated more than $5 billion in Bitcoin transfers from private wallets into the fund. This suggests a growing number of Bitcoin holders are shifting away from self-custody and choosing to gain exposure through a regulated ETF structure. He highlighted risks such as kidnapping, extortion, and custody security incidents as key reasons some investors are moving all or part of their assets into the ETF. For market participants, the inflow of billions from private wallets into IBIT could signal changing holder behavior, with potential effects on Bitcoin liquidity and volatility. Traders may watch whether this trend accelerates, as it could influence supply dynamics and intraday price movements in the underlying market.
