“Whale migration. Despite some recent minor underperformance, after fear dominated the crypto sector following the sudden crash on October 10, Bitcoin Cash ETFs have managed to attract over $61 billion in net inflows since their launch in January 2024. This phenomenon of migration of BTC whales from the blockchain to the funds of Wall Street giants, led by BlackRock, has been highlighted […]”, — write: businessua.com.ua
Whale migration. Despite some recent minor underperformance, after fear dominated the crypto sector following the sudden crash on October 10, The Bitcoin Cash ETF managed to attract over $61 billion in net inflows since their launch in January 2024. This is a phenomenon migration BTC whales from the blockchain to the funds of Wall Street giants, led by BlackRock was highlighted in a recent Bloomberg article. Explanation.
Key points of this article:
- Since January 2024, spot bitcoin ETFs have attracted over $61 billion in net inflows.
- Wealthy Bitcoin holders increasingly prefer BlackRock ETFs due to their convenience and legitimacy, thus integrating Bitcoin into mainstream finance.
bitcoin- ” whales ” (large owners) seem to prefer translation of their crypto-riches with blockchain to exchange funds ( ETFs ) offered by asset management giants such as BlackRock and Fidelity .
Especially given that these ETFs can offer an in-kind exchange after receiving the green light from SEC (Securities and Exchange Commission) in July last year. Thus, creation and redemption of shares of these funds can be carried out directly in precious cryptocurrency without going through the stage of fiat currency (here USD).
According to information published by Bloomberg on October 21, 2025, BlackRock has already processed over 3 billion dollars such transactions in kind since July. Robbie Mitnick head of digital assets at BlackRock, points out that whales have “ convenience in what they can maintain their influence [на Bitcoin] while remaining within your existing relationship with your financial advisor or private bank “.
Direct storage and the associated risks are a deterrent for large portfolios Although Bitcoin was born as decentralized rebellion against traditional finance obviously the king of cryptocurrencies now increasingly integrated into them . Wealthy investors exchange their bitcoins held in the banking sector for ETF shares in cash to preserve their exposure, while benefiting from the legitimacy and simplicity that makes it easy to use as collateral for the loan or for inheritance .
Thus, Robbie Mitchnick expects increase in trading volumes cryptocurrency ETFs, especially considering increasing regulatory clarity in the United States and recent emergence of banks such as Morgan Stanley . However, according to BlackRock’s framework, “whales” have different approaches: some want 20% conversion their BTC into a stock ETF, while others want to full transition (100% in ETF).
Thus, funds such as the iShares Bitcoin Trust ETF ( IBIT ) from BlackRock are likely to face rising tide wealthy BTC owners. So, bitcoin developed by Satoshi Nakamoto to break free from TradFi (of traditional finance), may well one day end up mostly held through ETFs and other similar financial products. A little like what happened with gold as a precious metal turned from a currency into a reserve asset trading in the form of ETFs rather than coins or bullion, which would require more (too?) risky holdings for mass ownership by affluent laypersons.
Source: journalducoin.com
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