Some large Bitcoin holders are exchanging their coins for fund shares rather than selling them for cash. According to BeInCrypto, as cited by TechFlow on November 9, 2026, holders had converted more than $5 billion worth of BTC into shares of BlackRock’s iShares Bitcoin Trust (IBIT).
A change in how bitcoin is held
The holders receive fund shares through an in-kind conversion using bitcoin they already own. The report says this lets them make the exchange without selling their bitcoin and may defer taxation. That potential tax treatment is not a guaranteed outcome.
BlackRock’s head of digital assets, Robbie Mitchnick, cited incidents involving kidnapping, extortion and custodian failures as factors driving the trend. He expected it to continue growing.
Why this is not a fresh cash inflow
The distinction is between changing the form of an existing holding and bringing new money into the market. According to the report, these conversions use existing bitcoin and do not add new cash to the market. The reported $5 billion therefore should not be read as $5 billion in fresh cash demand.
U.S. regulators approved in-kind creations and redemptions for crypto-asset ETFs in July 2025. BlackRock lowered its minimum conversion threshold from $25 million to $1 million in July 2026, the report said.
The central trade-off is the form of ownership: holders exchange directly held bitcoin for fund shares. The report identifies security concerns and possible tax deferral as motivations, but it does not establish that conversion removes custody risk or guarantees a tax benefit.
Original source: TechFlow, citing BeInCrypto. Published November 9, 2026, at 23:39:43 (UTC+8).