Belet has converted bitcoin to the minimum of its current ETF IBIT share, down from $25 million to $1 million. Pembo quoted Robbie Mitchick, the digital asset manager in Beled, as saying that the adjustment had been implemented in July, thus allowing more high net value clients and institutions to use such conversion services.

This change does not affect the sale of IBIT by ordinary investors in voucher accounts. The threshold adjustment relates to the process by which a Bitcoin holder converts a spot asset to an ETF share, rather than the minimum amount of ETF purchased in the secondary market.

IBIT cumulatively completed over $5 billion conversion

Mitchnick says that IBIT has processed more than $5 billion through this kind of bitcoin conversion. The report mentions that last October this figure was about $3 billion, indicating that demand is still growing.

Bitwise made a similar adjustment. According to the report, the institution had reduced the minimum threshold for conversion from $100 million to $3 million. The actions of both institutions point to the same trend: lower operational thresholds for large holders to enter ETF structures.

  • Beled threshold: $25 million down to $1.0 million
  • Bitwise threshold: $110 million down to $3 million
  • IBIT Cumulative Conversion Scale: Over $5 billion

It'll be more flexible when the physical atonement is released.

In July 2025, the United States Securities and Exchange Commission (SEC) approved the use of spot-encrypted ETF for in-kind requisitions and foreclosures. Earlier approvals require that the Fund use mainly cash processes.

Under this mechanism, authorized participants can directly complete ETF share creation and foreclosure. For most bitcoin holders, however, conversions are generally still to be arranged through coupons, trading counters or other qualified intermediaries, as ordinary holders cannot directly create IBIT basket shares.

Thus, the point of the lower threshold is to extend services that would otherwise be directed only to over-large clients to more institutions and wealthy investors, rather than to change the underlying rules of ETF transactions.

Taxation and trusteeship remain key factors

The report also mentions that there is no uniform conclusion as to the tax result of the conversion of bitcoin to ETF share. The specific treatment depends on the identity of the investor, the intermediary of the transaction, the jurisdiction in which it is located and the legal structure of the transaction.

At that time, the SEC granted foreclosures in kind, with a focus on improving the efficiency of the Fund ' s operations and without special tax treatment for investors. Supervisors believe that such treatment can help to reduce the costs for issuers, authorized participants and shareholders.

Mitchnick also indicated that some currency holders, after seeing security incidents related to encrypted assets, such as hacker attacks, kidnappings, began to reassess the self-custody risk and to consider transferring part or all of the hold to regulated products.

Overall, falling thresholds may attract more large holders to consider moving bitcoin into ETF structures, but the actual level of use still depends on the availability of intermediaries, transaction costs, tax treatment and investor judgement on the trade-off between direct currency holding and regulated products.