According to Barron's, BlackRock's digital assets head Robbie Mitchnick revealed that since regulators approved crypto physical redemptions last year, the firm has recorded approximately $3.6 billion in direct bitcoin conversions to its spot Bitcoin ETF IBIT shares. Mitchnick noted the actual scale may be larger since BlackRock does not process all transactions directly.

The physical conversion threshold has dropped from roughly $30 million initially to $1 million to $2 million, set by intermediaries including Galaxy Digital, Talos, and Virtu. Mitchnick highlighted that security and peace of mind remain the primary driver, with institutional-grade cold storage custody proving more attractive to large holders than crypto exchange or hot wallet storage.

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