Large asset managers like BlackRock (NYSE: BLK) are luring Bitcoin whales to Wall Street as per a recent report by Bloomberg.
BlackRock, which launched spot Bitcoin exchange-traded funds (ETFs) in the U.S. in January 2024, is helping the wealthy crypto holders find a way to assimilate into the traditional financial system without selling their assets.
Related: What is Crypto? Cryptocurrency explained
In simple words, a spot Bitcoin ETF is a financial product traded on traditional stock exchanges that seeks to track the spot price performance of BTC. It helps investors gain indirect exposure to Bitcoin without the need for them to directly own the cryptocurrency.
As per SoSoValue, BlackRock’s iShares Bitcoin Trust (IBIT) holds around $89 billion in net assets as of Oct. 20.
As per the report, asset managers like BlackRock are allowing Bitcoin holders to easily turn their holdings into ETF shares.
The trend follows a regulatory update that the Securities and Exchange Commission (SEC) issued on July 29 that allows in-kind creations and redemptions by authorized participants for crypto asset exchange-traded product (ETP) shares.
The process sends the user’s Bitcoin holdings from a ledger to BlackRock’s brokerage statement, the report added. The company’s head of digital assets, Robbie Mitchnick, revealed that BlackRock has turned more than $3 billion worth of Bitcoin into ETF shares so far.
One of the main reasons Bitcoin whales are converting their holdings is “the convenience of being able to hold their exposure within their existing financial adviser,” said Mitchnick.
While BTC is still considered a risky asset, once it is part of the traditional financial system through ETF shares, it can be used as collateral, borrowed against, and passed on to heirs.
Mitchnick said while some clients want to turn only 20% of their Bitcoin holdings into ETF funds, others want to turn all of it.
Other players like Bitwise Asset Management and Galaxy have also tapped into the trend, converting crypto holdings into ETF shares.
“There are still benefits of having things in the traditional financial system,” said Bitwise president Teddy Fusaro.
Wes Gray, CEO and founder of ETF firm Alpha Architect, said, “The great irony, of course, is that Bitcoin was born to escape traditional finance — and now its biggest holders are trying to get back in.”
Bitcoin was trading at $108,403.74 at press time as per Kraken’s price feed, down 2.32% in a day.
This story was originally reported by TheStreet on Oct 21, 2025, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.
