Large asset managers like BlackRock are attracting Bitcoin whales to Wall Street, helping them assimilate into the traditional financial system with spot Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust holds $89 billion in net assets. The trend follows a regulatory update allowing in-kind creations and redemptions for crypto ETP shares by the SEC.

Bitcoin holders are converting their holdings to ETF shares for convenience within the traditional financial system. While still considered risky, Bitcoin in ETF form can be used as collateral, borrowed against, or passed on. Some clients convert 20% of their holdings, while others convert all.

Other players like Bitwise Asset Management and Galaxy are also converting crypto holdings to ETF shares. The irony is that Bitcoin was created to escape traditional finance, but now its biggest holders are trying to get back in. Bitcoin was trading at $108,403.74 at press time, down 2.32% in a day.

Read more at Yahoo Finance: New SEC update lets BlackRock open Wall Street to unusual investors