BlackRock has recorded approximately $3.6 billion in direct Bitcoin holdings converted into iShares Bitcoin Trust (IBIT) shares since regulators approved in-kind redemption, according to Robbie Mitchnick, head of digital assets at BlackRock. The actual volume may be higher, as not all transactions are processed through BlackRock. Mitchnick emphasized that demand for these conversions is not driven by Bitcoin price fluctuations but primarily by security concerns. Investors increasingly prefer outsourcing custody to institutional-grade cold storage rather than holding coins on exchanges or in hot wallets. He cited the recent Binance hack as underscoring platform risk. The minimum threshold for in-kind conversion has dropped significantly, from roughly $30 million to between $1 million and $2 million, making the service accessible to a broader range of holders.