IBIT (IBIT.US) conversion breaks 5 billion, end of the self-hosting era?

According to Woofun AI, the wave of self-escrow to ETFs led by IBIT (IBIT.US), a subsidiary of BLK.US (BLK.US), has now begun. The scale of the Bitcoin spot conversion business has expanded significantly, and the flow of capital has fundamentally reversed.

According to data compiled by Woofun AI, the total amount of conversions processed by IBIT (IBIT.US) has exceeded 5 billion US dollars, a sharp jump from 3 billion US dollars in October last year. This increase stemmed from asset management firms lowering the minimum threshold, making it easier for smaller investors to participate; at the same time, hacking attacks and the risk of private key loss prompted capital to seek safe haven, combined with capital gains tax advantages in some jurisdictions, to drive this structural shift.

According to Bloomberg analysis, Bitwise's BITB (BITB.US) and Morgan Stanley (MS.US)'s MSBT (MSBT.US) also showed a similar trend, and the latter absorbed 5% to 7% of managed assets through conversion. As retail investors move from personal wallets and trading platforms to supervised asset custody, the trade-off between convenience, security, and direct control becomes critical.

Although the lower entry threshold increases liquidity and may reduce the supply of Bitcoin on exchanges, thereby affecting prices, investors still need to make careful decisions based on risk tolerance and financial goals.

Driven by BlackRock (BLK.US) IBIT (IBIT.US), cryptocurrencies are accelerating their integration into the mainstream financial sector. Regulated investment instruments are gradually replacing the model of directly holding Bitcoin. This shift is expected to redefine how this asset is held and traded over the next few years, marking a significant increase in the maturity of the industry.