[Large Bitcoin Holders Shift to Converting Holdings into ETF Shares via Physical Settlement, BlackRock Facilitates Over $3 Billion in Related Conversions] Foresight News reports, according to Bloomberg, that some large Bitcoin holders are currently converting their Bitcoin holdings into ETF shares through physical settlement. A regulatory change this summer allowed large investors to hand over Bitcoin to ETFs in exchange for fund shares, a process known as physical settlement. While this method applies to most ETFs, it was only approved for Bitcoin products in July of this year. This process is typically tax-neutral, requiring no cash transactions or sales records. After conversion, these assets transition from highly volatile digital assets to assets that are easier to use for collateralized borrowing, as collateral, or for inheritance purposes on brokerage statements. When assets are stored in private digital wallets, these operations can become cumbersome, risky, or even unfeasible. The ETF structure provides legitimacy and convenience, transforming previously obscure wealth into assets that banks and advisors can manage. According to BlackRock's Head of Digital Assets, Robbie Mitchnick, BlackRock has facilitated over $3 billion in such conversions. Bitwise Asset Management stated that investors are now inquiring daily about how to transfer their holdings to wealth management platforms. Michael Harvey, Head of Franchise Trading at liquidity provider Galaxy, mentioned that the company has so far handled a small number of conversions.