BlackRock is starting a new era in Bitcoin.

Big Bitcoin (BTC) holders have started to integrate into the financial system without selling their assets by transferring them to exchange-traded funds (ETFs) following the "in-kind" regulation approved in July. According to Bloomberg's report, in recent weeks, large investors have begun moving their Bitcoins directly to spot ETFs, receiving fund shares in exchange for this transaction.

With this method, large investors managed to enter the traditional financial system without selling their Bitcoins in a tax-free manner. Behind this move is the new policy announced by the U.S. Securities and Exchange Commission (SEC) on July 29, 2025. In a decision made during the summer months, the SEC allowed "in-kind" creation and redemption processes in crypto asset-based ETFs. This change only applies to Bitcoin and Ethereum (ETH) spot ETFs, where cash-based transactions were previously permitted. SEC Chairman Paul Atkins emphasized that this step would make products “lower-cost and more efficient.”

With the new regulation, authorized participants can now deliver Bitcoin directly instead of cash when creating or redeeming ETF shares. This system provides more flexibility for both issuers and investors. According to Bloomberg, some large investors are moving their Bitcoins by exchanging them for ETF shares, thereby transferring their assets to brokerage accounts. This way, these assets can be used as collateral and included in estate planning. Moreover, since these transactions are not recorded as "sales," they do not incur tax liabilities.

BlackRock stands out as one of the biggest players in this field. The company's digital asset unit manager, Robbie Mitchnick, revealed that BlackRock has facilitated over $3 billion worth of such conversion transactions so far. Bitwise receives similar requests daily, while Galaxy has reported conducting several transactions. Some investors transfer only a small portion, while others consolidate all their assets into ETFs, stating "this is the easiest method in the future."

Bitwise President Teddy Fusaro noted the advantages of keeping assets within the traditional financial system, highlighting the importance of services offered by private banks to these clients. Currently, banks play a limited role in these transactions, while full trading authority rests only with brokerages. This development heralds a new era in the integration of Bitcoin into the traditional financial system.