Bitcoin: For fear of kidnapping, whales entrust $5 billion to BlackRock
Fearing kidnappings, large holders converted more than $5 billion in bitcoin into shares of BlackRock's IBIT ETF. Decryption.
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Interviewed by the press, Robbie Mitchnick explains that some investors convert all or part of their bitcoins after seeing other holders victims of attacks or incidents related to the custody of their assets. Chainalysis recorded 46 violent attacks or attempts worldwide at the end of June 2026, compared to 40 at the same period in 2025. The count includes kidnappings, home invasions and hostage-taking.
The SEC authorized the creation and redemption of shares in kind in July 2025. The operation goes through an authorized intermediary who organizes the transfer of bitcoins to the fund in exchange for shares. The investor thus maintains exposure to the price of bitcoin, while the fund entrusts the custody of the assets to its custodians. In July 2026, BlackRock lowered the minimum amount for these conversions from $25 million to $1 million.
An in-kind conversion transfers bitcoins already held by the investor to the fund. It can therefore increase the number of bitcoins held by IBIT without requiring a purchase on the market at the time of the transaction. The fund's quarterly report shows $15.3 billion in bitcoins received in kind during share creations over the first nine months of 2026. This figure covers all in-kind creations and therefore goes beyond the sole scope of conversions of large portfolios mentioned to Bloomberg.
Across all US spot Bitcoin ETFs, the balance of flows deteriorated at the beginning of November. According to SoSoValue data, funds saw $1.28 billion in net outflows from November 2-6, bringing the year-to-date balance to approximately −$914 million as of that date.
For holders switching to IBIT, the change mainly concerns the custody of their bitcoins. They remain exposed to price variations, with units held in a securities account and annual fees of 0.25% taken by the fund. But at least they sleep more peacefully.
An editorial article. Le Journal du Coin, the first French-speaking news media on cryptocurrency, Bitcoin, and blockchain protocols.
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- Journal du Coin13 Nov, 12:00Bitcoin: For fear of kidnapping, whales entrust $5 billion to BlackRock ↗Figures: 5 milliards
| Publisher Journal du Coin (general tier) | +72 |
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| Total | 75 |
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