BlackRock is fueling a shift in cryptocurrency markets by attracting major Bitcoin whales, according to Bloomberg. Large-scale investors holding significant Bitcoin have begun converting their holdings into exchange-traded funds (ETFs) on Wall Street. This trend is driven by a recent regulatory change that allows these whales to move their Bitcoin into ETFs and trade them as shares without incurring taxes. BlackRock, at the forefront of this initiative, has facilitated over $3 billion in ETF conversions. Its Head of Digital Assets, Robert Mitchnick, confirmed that BlackRock’s ETF conversion activity exceeds $3 billion. 50% of large whale Bitcoin holdings were shifted into ETFs after a July regulatory change permitting such conversions and prompting increased demand for Bitwise and Galaxy ETFs. While the exact number of trades these whales have completed through BlackRock’s IBIT ETF remains unclear, Mitchnick believes greater regulatory clarity will increase trading volume and participation from major banks. Notably, investor preferences range from those looking to transition only 20% of their Bitcoin holdings into ETFs to complete shifts towards traditional financial markets (TradFi). *This is not investment advice.*