Bitcoin Flows to Wall Street via In-Kind ETFs Backed by BlackRock as Crypto Whales Shift Holdings into Regulated Markets

Bloomberg reports that sizable Bitcoin holders are reallocating capital from crypto wallets into regulated markets, pushing liquidity onto Wall Street balance sheets.

A new cadre of ETFs offers these traders a path to integrate digital assets with traditional finance without divesting Bitcoin, using funds managed by major players such as BlackRock.

A regulatory change this summer enabled this approach: investors can deliver Bitcoin to an ETF in exchange for shares, a process known as in-kind exchange, which has gained approval for Bitcoin products as of July.