Large Bitcoin holders are exchanging their held Bitcoin for shares of BlackRock's ETF. 1. Mitchnick, head of BlackRock's digital assets, told Barron's that demand for physical Bitcoin in exchange for IBIT shares is currently at an all-time high, with BlackRock seeing approximately $3.6 billion in transactions, though the actual figure may be higher. 2. He stated that the primary reason is security: kidnappings, extortion, hacking, and custodian breaches. France has already recorded 77 crypto-related kidnappings, extortions, and burglaries this year, exceeding the total for 2025; there have also been numerous cases of hardware wallets and private keys being hacked this year. 3. The threshold has dropped from approximately $30 million initially to $1-2 million now; this physical conversion counts as ETF inflows but does not represent new purchases in the market. This is also an increasingly significant trend: institutions are playing a growing role and wielding greater influence in the crypto space. BTC