The_Bitcoin_Act on Nostr: Over $5 billion of self-custodied bitcoin has been converted into BlackRock's IBIT ...
Over $5 billion of self-custodied bitcoin has been converted into BlackRock's IBIT shares.
Not sold. Converted in kind, meaning no coins hit the market and no tax event fires. The holders simply stopped holding their own keys.
BlackRock's head of digital assets, Robbie Mitchnick, named one reason: kidnappings and custody failures.
That is the trade being made right now at the top of the distribution. Direct ownership of the asset, exchanged for a share that represents a claim on a custodian who holds it for you. Whether that is prudent risk management or the thing we spent fifteen years building an exit from depends entirely on how you weigh a wrench against a counterparty.
I have a view. Issue #76 of The Bitcoin Act is live, and it also covers:
🇪🇺 ECB board member Piero Cipollone says the digital euro offers the maximum privacy current technology allows, while conceding the banks distributing it can still identify you
🔍 Chainalysis counted $457 billion of taxable activity in 2025. International reporting rules reach 14 percent of it
Free. Tuesdays and Sundays. Link in the first reply.
Tell me where you land: is the in-kind conversion a rational security decision, or the fastest reintroduction of the custodian in Bitcoin's history?
Published at
2026-08-30 18:42:40 UTCEvent JSON
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"content": "Over $5 billion of self-custodied bitcoin has been converted into BlackRock's IBIT shares.\n\nNot sold. Converted in kind, meaning no coins hit the market and no tax event fires. The holders simply stopped holding their own keys.\n\nBlackRock's head of digital assets, Robbie Mitchnick, named one reason: kidnappings and custody failures.\n\nThat is the trade being made right now at the top of the distribution. Direct ownership of the asset, exchanged for a share that represents a claim on a custodian who holds it for you. Whether that is prudent risk management or the thing we spent fifteen years building an exit from depends entirely on how you weigh a wrench against a counterparty.\n\nI have a view. Issue #76 of The Bitcoin Act is live, and it also covers:\n🇪🇺 ECB board member Piero Cipollone says the digital euro offers the maximum privacy current technology allows, while conceding the banks distributing it can still identify you\n🔍 Chainalysis counted $457 billion of taxable activity in 2025. International reporting rules reach 14 percent of it\n\nFree. Tuesdays and Sundays. Link in the first reply.\n\nTell me where you land: is the in-kind conversion a rational security decision, or the fastest reintroduction of the custodian in Bitcoin's history?\nhttps://blossom.primal.net/9345da9654a96d84f8a6f194881abe561e41e13b54317958e6bc86b1a86192b9.jpg\nhttps://blossom.primal.net/967985002fb661626bc79b18c9d9a82b17ba90c8a073c11b9b6aa123353e6063.jpg",
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