The threshold for in-kind access to BlackRock's spot Bitcoin ETF 'IBIT' has been significantly lowered. As the channel allowing large-scale Bitcoin holders to move their holdings into ETF shares without first disposing of them on the market expands, institutional investors' range of utilization is also broadening.

■ Minimum Transaction Size Lowered from $25 Million to $1 Million

The market estimates that more than $5 billion worth of Bitcoin has flowed into the ETF structure via the in-kind method so far. In particular, analyses indicate that the minimum size required for such transactions has been reduced from the previous level of around $25 million to $1 million, meaning more investors can now use this method than before.

■ Converting to ETF Shares Without Selling…Key Lies in the Transaction Structure

Previously, investors had to sell Bitcoin, convert it to dollars, and then purchase shares of BlackRock's spot Bitcoin ETF, IBIT. In contrast, under the in-kind method, investors meeting certain requirements deliver Bitcoin through an Authorized Participant (AP) and receive corresponding ETF shares in return.

This approach has the advantage of reducing the price impact and slippage that can occur when directly selling large volumes on the market. As the transaction process becomes simpler, institutions and large holders gain the option of switching only their investment vehicle to ETF form while maintaining their Bitcoin exposure.

■ Tax Treatment Requires Individual Verification by Investor

Tax treatment may also vary depending on the transaction structure. Unlike the method of selling Bitcoin first, some interpretations suggest that the in-kind transfer process may not be recognized as an immediate disposal. However, whether taxes actually apply depends on the investor type, transaction method, and the tax laws of the relevant jurisdiction, so individual verification is necessary.

■ Crypto Assets Take Root as Underlying Assets of Mainstream Financial Products

This change can be seen as another step forward in the trend of using Bitcoin not merely as a trading asset but as an underlying asset for mainstream financial products. The market expects that as Bitcoin holding structures through ETFs expand, the connection between Wall Street and the crypto market will grow even tighter.

[Crypto assets are highly volatile, and technical analysis and market outlooks may differ from actual price movements. Future prices cannot be determined solely by short-term support and resistance breakouts, and market liquidity, macroeconomic conditions, regulations, and project-related news must be comprehensively reviewed. This article is not intended to recommend the purchase or sale of any specific crypto asset or to guarantee investment returns. This article was written with AI assistance.]