Key Takeaways
- • Large Bitcoin holders have transferred more than $5 billion in coins to BlackRock's iShares Bitcoin Trust (IBIT), the largest spot Bitcoin ETF, via in-kind swaps, according to BeInCrypto's report citing Bloomberg.
- • BlackRock digital assets head Robbie Mitchnick told Bloomberg the trend will keep growing, citing fears around kidnappings, ransom and custody failures.
- • Chainalysis counted 46 violent attacks on crypto holders by late June 2026, up from 40 a year earlier, with about half being kidnappings.
- • The in-kind inflows add no new cash to Bitcoin ETFs, which have seen net outflows: $26.1 billion paid out versus $25.6 billion taken in year-to-date through November 5, plus a further $1.28 billion outflow in the week ending November 6 per SoSoValue.
- • If outflows continue through December, 2026 would be the first losing year for US spot Bitcoin ETFs since their January 2024 launch.
Summary
BlackRock's iShares Bitcoin Trust (IBIT) has taken in more than $5 billion in Bitcoin from large holders, according to BeInCrypto, which cited Bloomberg reporting. Robbie Mitchnick, who runs digital assets at BlackRock, told Bloomberg that the trend will keep growing and attributed it to security concerns, saying people are reacting to events such as kidnappings, ransom demands and custody failures.
The security concerns are backed by data cited in the report. Chainalysis, a blockchain research firm, counted 46 violent attacks on crypto holders by late June, up from 40 a year earlier, with roughly half classified as kidnappings. BeInCrypto also reported an account from an investor who said a kidnapping in Oxford cost him $2 million.
Holders deliver their Bitcoin to IBIT in exchange for fund shares without selling, a structure that can defer a tax bill. US regulators approved in-kind ETF swaps in July 2025, and BlackRock lowered the minimum for such transfers from $25 million to $1 million this July. Barron's reported Monday that additional large holders want to participate.
The report stresses that these inflows do not add new capital to Bitcoin. ETFs create shares only when investors contribute cash, and swapped coins already existed. US spot Bitcoin ETFs took in $25.6 billion year-to-date but paid out $26.1 billion through November 5, and a further $1.28 billion left in the week ending November 6, according to SoSoValue data. BlackRock's digital assets totaled $79.6 billion as of September 30, per its filing. If net cash outflows continue through December, 2026 would be the first losing year since these ETFs launched in January 2024.
The security concerns are backed by data cited in the report. Chainalysis, a blockchain research firm, counted 46 violent attacks on crypto holders by late June, up from 40 a year earlier, with roughly half classified as kidnappings. BeInCrypto also reported an account from an investor who said a kidnapping in Oxford cost him $2 million.
Holders deliver their Bitcoin to IBIT in exchange for fund shares without selling, a structure that can defer a tax bill. US regulators approved in-kind ETF swaps in July 2025, and BlackRock lowered the minimum for such transfers from $25 million to $1 million this July. Barron's reported Monday that additional large holders want to participate.
The report stresses that these inflows do not add new capital to Bitcoin. ETFs create shares only when investors contribute cash, and swapped coins already existed. US spot Bitcoin ETFs took in $25.6 billion year-to-date but paid out $26.1 billion through November 5, and a further $1.28 billion left in the week ending November 6, according to SoSoValue data. BlackRock's digital assets totaled $79.6 billion as of September 30, per its filing. If net cash outflows continue through December, 2026 would be the first losing year since these ETFs launched in January 2024.
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