Large Bitcoin holders, known as whales, are moving their holdings into exchange-traded funds (ETFs) to integrate wealth into traditional finance. BlackRock’s iShares spot Bitcoin ETF (IBIT) has facilitated over $3 billion in conversions. A recent SEC rule change allows in-kind creations and redemptions for crypto ETFs, making large-scale conversions more efficient.

BlackRock’s IBIT has surpassed $88 billion in assets, the fastest ETF to reach $70 billion in history. US spot Bitcoin ETFs are seeing a surge in inflows during the current bull run. This trend highlights the growing institutionalization of Bitcoin and the shift towards custodial forms of ownership.

While self-custody has been a core tenet of Bitcoin, the rise of spot Bitcoin ETFs challenges this ideal. Analysts note that ETF demand may be diverting interest away from self-custody. Despite this shift, ETFs have opened the door to greater institutional participation in Bitcoin, influencing early whales’ behavior.

Read more at Cointelegraph: Bitcoin Whales Shift Billions Into ETFs Like BlackRock’s IBIT