BlackRock Bitcoin ETF reduces in-kind transfer minimum to $1M

BlackRock lowered the minimum in-kind transfer size for its spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), from $25 million to $1 million, making it much easier for authorized participants to create and redeem shares using actual Bitcoin instead of cash. The change follows the SEC’s mid-2025 approval of in-kind transactions for spot Bitcoin ETFs and marks a step toward more flexible hybrid cash/in-kind ETF operations. The new threshold is now below the value of a typical IBIT creation basket, which the article estimates at about 22.65 BTC worth roughly $1.47 million. With IBIT managing more than $48 billion in assets, the adjustment could improve ETF operational efficiency and influence market-making and competitor behavior across the U.S. spot Bitcoin ETF space.