Long-time Bitcoin whales, once staunch advocates of self-custody, are increasingly trading their private keys for the convenience and benefits of traditional finance. Recent shifts reveal that some of Bitcoin’s earliest and largest holders are quietly converting parts of their spot holdings into exchange-traded funds (ETFs), particularly BlackRock’s Bitcoin ETFs. This trend indicates a significant pivot as these whales embrace broader wealth management tools, even if it means giving up direct control over their assets.
BlackRock’s head of digital assets, Robbie Mitchnick, confirmed that the firm has facilitated conversions exceeding $3 billion, highlighting a growing appetite among early adopters for integrating crypto exposure within familiar private banking and advisory relationships. This momentum has been boosted by recent SEC rule changes that allow in-kind creations and redemptions for Bitcoin ETFs, making it easier for investors to swap ETF shares directly for Bitcoin rather than cash.
Onchain data from analyst Willy Woo underscores this dynamic, showing that self-custodied Bitcoin just broke a 15-year upward trend as spot ETF adoption accelerates. BlackRock’s iShares Bitcoin Trust (IBIT) dominates this space with over $88 billion in net assets and surging inflows this year. This movement not only marks a pivotal shift in market behavior but also signals a maturation where traditional finance and crypto increasingly intertwine.
Read more: https://cointelegraph.com/news/crypto-biz-bitcoin-whales-trade-keys-for-comfort