BlackRock IBIT In-Kind Swaps Exceed $5B Amid Security Concerns
Bitcoin (BTC)
Editor:
Eugene Serbin
Cryptopotato reports that BlackRock has facilitated over $5 billion in Bitcoin-for-ETF-share swaps into its IBIT fund after lowering the minimum transaction size to $1 million in July. This shift allows investors to maintain Bitcoin exposure while moving custody into a regulated structure, a move driven by security fears such as kidnappings and custody failures. BlackRock’s head of digital assets, Robbie Mitchnick, noted that these incidents motivate holders to switch their holdings for the added security.
The process, which can take more than a week, has seen inquiries from clients both inside and outside the US. BlackRock initially opened the process with a $25 million minimum before dropping it to $1 million last month. Other issuers are also adapting, with Bitwise reducing its minimum from $100 million to $3 million and Morgan Stanley seeing in-kind conversions make up 5% to 7% of its MSBT fund.
Grayscale reported that in-kind trades now account for 62% of Bitcoin creations and 63% of Ethereum creations. The mechanism is expanding beyond Bitcoin, with Grayscale and VanEck processing Ethereum trades and Bitwise handling Solana. Despite the growth, every trade must still pass through an authorized participant, which adds cost and explains the initial focus on large holders. This activity coincides with Bitcoin climbing above $81,000 and spot ETFs pulling in over $2.5 billion since August 17.
How the market reacted
Whalio's own Binance spot order flow for BTC, measured when this story was written up on 26 August 2026. Not the outlet's figures.
Whalio’s Binance spot data for Bitcoin shows a price of $79,023.75 with a 24-hour buy ratio of 49.9%, indicating near-even distribution between buyers and sellers. Shorter-term pressure is slightly more bearish, with the 1-hour buy ratio at 44.7% and the 4-hour ratio at 43.0%, suggesting that immediate buying momentum is fading relative to the daily average. The 24-hour volume delta is -$903,088, meaning that sell volume has slightly exceeded buy volume over the last day. Over the last hour, the volume delta is -$9,605,302, and over four hours it is -$13,495,762, reinforcing the trend of net selling pressure in the short term. The Cumulative Volume Delta (CVD) for the 24-hour close is -$64,526,673, confirming that sellers have dominated the flow. Net buying occurred for only 10 of the 24 hours, highlighting a day where selling pressure was prevalent.
The latest daily buy ratio of 46.7% sits at the 18th percentile of the last 322 days, against a median of 49.2% - weaker buying than most days.
Twenty-four hours later
What BTC did over the 24 hours after the story broke. The market moves for its own reasons; this is what happened, not what the story caused.
Was that an ordinary day?
The same Binance spot measurements for BTC, averaged over the days leading up to the story.
Compared to the preceding week, today’s buy ratio of 49.9% is below the 7-day average of 51.6%, indicating a shift toward more balanced or slightly bearish sentiment. Volume has also contracted significantly, with today’s spot volume of $1,148,236,056 being just 0.54x the weekly average, marking a notable decrease in trading activity. While the coin saw a +14.0% price change over the eight-day period, the current day’s volume is roughly half of what is typical for the week. This suggests that while the recent trend has been upward, today’s trading activity is unusually quiet compared to the preceding days. The weekly volume delta of +$445,688,281 contrasts with today’s negative delta, showing that the recent accumulation has paused or reversed slightly in the short term.