Large bitcoin holders have exchanged more than $5 billion worth of BTC for shares in BlackRock’s iShares Bitcoin Trust (IBIT), according to a BeInCrypto report cited by TechFlow on November 9, 2026.

The holders used in-kind conversions to receive fund shares without selling their bitcoin, a process that may defer taxation. The report describes a change in how existing bitcoin exposure is held—not an influx of new cash into the market.

Security concerns behind the shift

BlackRock’s head of digital assets, Robbie Mitchnick, identified kidnappings, extortion and failures by custodians as factors driving the conversions. He expected the trend to continue growing.

The custody distinction is central: holders are exchanging BTC for fund shares rather than continuing to hold that BTC directly. The report attributes the shift partly to security concerns; it does not establish that fund shares eliminate custody risk.

Regulatory approval and a lower threshold

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, according to the report.

These conversions use bitcoin already held by investors. The reported $5 billion figure therefore should not be read as $5 billion in fresh cash demand for bitcoin.

Original source: TechFlow, published November 9, 2026, at 23:39:43 (UTC+8), citing BeInCrypto.