BlackRock has significantly expanded access to its Bitcoin investment products by reducing the minimum investment threshold for in-kind Bitcoin-to-IBIT conversions from $25 million to $1 million. According to reports from AMBCrypto, this change makes the BlackRock iShares Bitcoin Trust (IBIT) accessible to a much broader range of large Bitcoin holders, funds, and professional investors. The previous $25 million minimum had essentially restricted participation to large institutional or high-net-worth investors, but the new $1 million threshold opens the mechanism to a wider investor base. BlackRock's digital-assets head Robbie Mitchnick noted that in-kind creations have been growing over the past three quarters since the feature was introduced, with the price limit set based on what providers are willing to support for the administrative process. The in-kind creations can eliminate the need for middlemen to carry out significant Bitcoin sales and purchases on the open market, potentially increasing IBIT's efficiency and appeal while reducing trading frictions and enhancing liquidity.
Swedish Bitcoin treasury and health-tech company H100 Group has completed a significant acquisition that nearly tripled its Bitcoin holdings without requiring cash payment. As reported by AMBCrypto, the deal increased H100's total Bitcoin holdings to 3,506.4 BTC by 2,455.37 BTC after completing its acquisition of Norway's Moonshot and PDI. The transaction was structured as a 1:1 Bitcoin-for-Bitcoin exchange, meaning that instead of paying cash for the shares, the sellers received H100 shares in return for the Bitcoin and assets they contributed. Given Bitcoin's price as of July 31st, the transaction was estimated to be worth SEK 1.47 billion. Following the acquisition of the two Norwegian companies, H100's position in global public corporate Bitcoin holdings rose from 42nd to 26th. The move follows the SEC's mid-2025 approval of in-kind transactions for spot Bitcoin ETFs and signals a broader shift across U.S. spot Bitcoin funds toward hybrid cash/in-kind mechanics.
The reduced minimum threshold unlocks significant tax advantages for large Bitcoin holders, as IBIT operates as a grantor trust, allowing shareholders to retain their original Bitcoin cost basis and holding period when swapping into the fund. According to crypto tax specialist Clinton Donnelly from CryptoTaxFixer, "an in-kind contribution of Bitcoin to IBIT is non-taxable, with your basis and holding period carrying over," though this relies on IBIT's grantor trust treatment and requires IRS formal ruling. This tax structure makes the in-kind conversion substantially more attractive than traditional Bitcoin sales, which trigger capital gains taxes. The timing coincides with renewed institutional interest, as US spot Bitcoin ETFs drew more than $850 million last week, their best performance since April, with funds now holding approximately $78 billion in Bitcoin. However, flows remain volatile, with the funds shedding $145 million on August 10 alone, reflecting ongoing market uncertainty despite the tax advantages.
