Long-time Bitcoin whales, once staunch defenders of self-custody, are increasingly favoring the ease and benefits of traditional finance by converting their spot Bitcoin holdings into exchange-traded funds (ETFs). This shift, highlighted by a top BlackRock executive, shows early Bitcoin holders exchanging control of their private keys for broader wealth management tools. BlackRock has already facilitated over $3 billion in these conversions, driven by recent regulatory changes that enable ETFs to exchange shares directly for Bitcoin.
Onchain data reveals that the total Bitcoin held in self-custody recently broke a 15-year upward trend, coinciding with a surge in spot ETF adoption — with BlackRock’s iShares Bitcoin Trust leading the market at over $88 billion in assets. This marks a strategic move by whales to gain convenience through traditional financial advisory and private banking relationships.
Meanwhile, Ripple-backed Evernorth Holdings plans to go public via a merger, aiming to build a sizable XRP treasury with more than $1 billion raised, including investments from SBI Holdings, Kraken, and Pantera Capital. This move reflects growing interest in digital asset treasuries despite skepticism around altcoin volatility.
Galaxy Digital leveraged the bull market and institutional adoption with robust Q3 earnings — $505 million net income and $629 million adjusted earnings — fueled by increased trading volumes and facilitating major transactions like an 80,000 BTC sale worth approximately $9 billion.
Wise, the global payments platform, signals potential entry into stablecoins by seeking expertise in digital asset wallets and payments, aligning stablecoins with its mission to simplify international money transfers across 160 countries.
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Source: https://cointelegraph.com/news/crypto-biz-bitcoin-whales-trade-keys-for-comfort