American "whales" are moving billions in bitcoin into ETFs: a new wave of interest in institutional solutions
Date: 2025-10-22 Author: Henry Casey Categories: CRYPTO PAYMENTS
According to Bloomberg, starting in the summer of 2025, market participants will be able to exchange cryptocurrency for fund shares without having to sell assets for dollars. The success of BlackRock's iShares Bitcoin Trust ETF has been particularly notable: over $3 billion in bitcoin has already passed through its structure.
Previously, such transactions were only possible through the in-cash model, whereby purchasing ETF shares required selling cryptocurrency and converting the proceeds into dollars. However, most US funds have now switched to the in-kind model, which allows investors to exchange assets directly, without recording the sale and, typically, without tax implications.
Crypto brokers note that interest from wealthy clients is growing every month. Owners of large sums prefer to place their assets within traditional financial structures—through banks, brokers, and management companies—which provides them with convenience and security.
BlackRock confirmed that clients are actively using the new mechanism, having already converted over $3 billion in bitcoin into fund shares. Representatives of Bitwise Asset Management stated that they receive dozens of requests for similar transactions daily. Galaxy Digital also confirmed that they have already carried out such transactions for their clients.
According to Robbie Mitchnick, Head of Digital Assets at BlackRock, moving bitcoin into ETFs doesn't reduce exposure to the cryptocurrency, but it does make holding it more flexible. Fund shares are easier to account for, include in estate plans, and use as collateral. Mitchnick noted that clients are transferring between 20% and 100% of their bitcoin assets into ETFs, depending on their individual strategy.
It's ironic that bitcoin, originally created as a tool to counter the traditional financial system, is now increasingly returning to its fold. Market participants believe this demonstrates the maturity of the crypto industry and the desire of large investors to combine the benefits of decentralized assets with the reliability of traditional institutions.
This trend could change the structure of Bitcoin ownership in the US and strengthen the position of ETFs as a key instrument for institutional participation in the crypto market.
