Long-time Bitcoin whales, once staunch defenders of self-custody, are increasingly trading their private keys for the conveniences of traditional finance. Recent revelations show that some of the earliest BTC holders are quietly transforming parts of their spot Bitcoin holdings into exchange-traded funds (ETFs), unlocking access to broader wealth management services.
This migration signals a significant shift in the crypto landscape, as ETFs — traditionally serving different audiences than spot Bitcoin holders — are gaining ground at the expense of onchain self-custody. Analyst Willy Woo highlights that self-custodied Bitcoin has just broken a 15-year growth trend, coinciding with the surge in spot ETF adoption.
BlackRock’s digital assets head, Robbie Mitchnick, confirms that over $3 billion worth of Bitcoin has transitioned into ETFs facilitated by the asset manager. Early adopters appreciate “the convenience of holding their exposure within existing financial adviser or private-bank relationships,” a transformation accelerated by recent SEC rule changes allowing in-kind ETF creations and redemptions.
At the forefront stands BlackRock’s iShares Bitcoin Trust (IBIT), commanding over $88 billion in net assets. The rapid inflow into U.S. spot Bitcoin ETFs underscores a broader narrative: Bitcoin whales are embracing traditional finance, trading private keys for streamlined access and institution-grade benefits.
Read more: https://cointelegraph.com/news/crypto-biz-bitcoin-whales-trade-keys-for-comfort