Minimum Amount for Bitcoin ETF Spot Conversion Reduced to $1 Million

In the Bitcoin (BTC) spot ETF market, BlackRock has lowered the minimum amount for the spot conversion of its iShares Bitcoin Trust (IBIT) from $25 million to $1 million. IBIT has processed over $5 billion in spot conversions to date, exceeding $3 billion in the same period last year. Spot conversion involves an eligible brokerage transferring BTC to the ETF and receiving ETF shares in return, without direct trading by individual investors. The U.S. Securities and Exchange Commission (SEC) allowed spot settings and redemptions for cryptocurrency ETPs on July 29, 2025. Spot conversion is a transaction that changes the storage form of existing BTC into ETF shares, distinct from new capital inflows. Bitwise has reduced its minimum spot conversion amount from $10 million to $3 million, while Morgan Stanley's MSBT reported that spot conversions account for about 5-7% of a total of approximately $560 million. The reductions in minimum amounts by BlackRock and Bitwise are measures to lower the barriers for conversions focused on large holders, shifting the competition for spot ETFs towards operational capabilities.