Bitcoin (BTC) was built so people could hold money without a bank. Now its big holders have handed more than $5 billion in coins to BlackRock, the $15.5 trillion Wall Street giant.
The reason is fear. And the move adds no new money to Bitcoin.
Why Are Bitcoin Holders Giving Up Their Wallets?
Robbie Mitchnick runs digital assets at BlackRock. He told Bloomberg the trend will keep growing. Then he explained what drives it.
“People see things happen in the outside world — whether it’s kidnappings, ransom, custody failures,” he said.
The danger is real. Chainalysis, a blockchain research firm, counted 46 violent attacks on crypto holders by late June. That is up from 40 a year earlier. About half were kidnappings.
This week, one crypto investor told BeInCrypto how a kidnapping in Oxford cost him $2 million.
How Do Coins Become Wall Street Shares?
Holders give their Bitcoin to BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin exchange-traded fund (ETF). They get fund shares back without selling, which can delay a tax bill.
US regulators approved in-kind ETF swaps in July 2025. This July, BlackRock cut the minimum from $25 million to $1 million, as BeInCrypto covered in its $1 million conversion minimum story.
More large holders now want in, Barron’s reported Monday.
Billions Moved In. So Why Are Bitcoin ETFs Losing Money?
Here is the catch. ETFs buy Bitcoin only when investors bring cash. Swapped coins already existed.
And the cash is leaving. US spot Bitcoin ETFs took in $25.6 billion this year. Through November 5, they paid out $26.1 billion, as BeInCrypto reported last week.
Another $1.28 billion left in the week ending November 6, SoSoValue data shows.
BlackRock still collects the coins. Its digital assets reached $79.6 billion by September 30, its filing shows.
If cash keeps leaving through December, 2026 becomes the first losing year since these ETFs launched in January 2024.
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