Bitcoin Whale Moves Funds to BlackRock ETF – A Sign of a New Era of Institutional Crypto Beginning?

Jakarta, Pintu News – A new phenomenon is taking place in the crypto world: Bitcoin (BTC) whales, i.e. large holders who have accumulated these assets since the beginning, are now starting to move their holdings to exchange-traded fund (ETF) products, mainly owned by BlackRock. This move marks a major change from the old practice of favoring self-custody of crypto assets.

Whale Starts Moving Bitcoin into BlackRock ETFs

According to Robbie Mitchnick, BlackRock’s Head of Digital Assets, the company has facilitated the conversion of more than $3 billion worth of Bitcoin into the iShares Bitcoin ETF (IBIT) product.

In his interview with Bloomberg, Mitchnick explained that whales now prefer the convenience of keeping their Bitcoin exposure under the supervision of financial institutions they already trust, such as investment advisors and private banks.

SEC Regulation Changes Pave the Way for Huge Fund Flows into Crypto ETFs

A major change in U.S. Securities and Exchange Commission (SEC) regulations is said to be a major factor in the increased institutional interest in Bitcoin ETFs. The new rules now allow for in-kind creation and redemption schemes, where authorized participants can exchange ETF shares directly for Bitcoin instead of cash. This mechanism makes the conversion process more efficient and tax-friendly, especially for large investors such as whales and financial institutions.

Also read: Bitcoin (BTC) Strengthens to $113,000, Gold Experiences Biggest Drop Since 2013

The changes open up opportunities for Bitcoin ETFs to become part of the traditional financial system in a more integrated way. Investors can maintain exposure to Bitcoin while enjoying access to conventional investment products and lending services. Mitchnick believes that this shift signals the beginning of a new era where crypto holdings are increasingly oriented towards institutional financial structures.

IBIT becomes the most successful Bitcoin ETF, a strong signal of crypto institutionalization

BlackRock’s Bitcoin ETF IBIT is now the most successful product among the dozens of Bitcoin spot ETFs approved in the United States. In June 2025, IBIT even set a record as the fastest ETF in history to reach $70 billion ($1.16 quadrillion) in assets under management (AUM), and has now crossed $88 billion ($1.46 quadrillion) according to data from Bitbo.

The rise reflects a surge in institutional interest in cryptocurrencies as an asset class. Analyst Willy Woo notes that this trend is contributing to a decline in Bitcoin’s 15-year self-custody trend. On-chain data shows the amount of privately held Bitcoin is declining, signaling large investors prefer the safety and convenience of organized investment products such as ETFs.

Nonetheless, parts of the crypto community retain the old principle of “not your keys, not your coins,” which emphasizes the importance of private ownership of digital assets. However, the influx of institutional funds shows that the market is transforming – from an asset dominated by individuals to a formally regulated and supervised global investment instrument.

Conclusion

The switch of Bitcoin (BTC) whales to BlackRock ETFs represents a major shift in how large investors manage their crypto exposure. With the support of new regulations from the SEC and the rapid growth of IBIT, the Bitcoin market is now increasingly merging into the traditional financial system.

This move strengthens Bitcoin’s position as an institutional asset, while marking a new era in the evolution of the cryptocurrency market, where security, efficiency, and legitimacy are at the forefront.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Bloomberg. Bitcoin whales quietly embrace BlackRock ETF following SEC rule change. Accessed October 23, 2025.
• Featured Image: Generated by AI