Hunter Horsley, CEO of Bitwise, has made a bold prediction that wealth management firms will increase their holdings of Bitcoin exchange-traded funds (ETFs). This forecast comes at a time when Bitcoin ETFs are expected to gain even more popularity following the halving event.
Horsley’s prediction aligns with the general market belief that there is a growing demand for ETFs. Prior to the Bitcoin halving, investments in Bitcoin ETFs in the United States experienced a net positive inflow after five consecutive days of decline.
BlackRock’s iShares Bitcoin Trust (IBIT) is closing in on Grayscale’s Bitcoin Trust (GBTC), trailing by just $2 billion. This positions BlackRock to potentially become the world’s largest Bitcoin fund, surpassing Grayscale. GBTC has experienced a 68-day period of value decline, losing nearly $16 billion and reducing its assets to $19.4 billion.
On the other hand, IBIT has seen continuous asset growth, reaching approximately $17.3 billion in total assets. However, there have been notable capital outflows from Grayscale’s spot Bitcoin ETF, with investors withdrawing $89.9 million in the last five days alone, contributing to a net outflow of $1.6 billion since January.
Despite Grayscale’s early lead, its dominance in the Bitcoin ETF market appears to be diminishing. Fidelity and BlackRock quickly gained significant market shares from the start of trading. For example, Fidelity and BlackRock Bitcoin ETFs experienced net inflows of $37.3 million and $18.7 million, respectively, in the same week, providing liquidity relief to the market.
Bitwise’s CEO describes the adoption of Bitcoin ETFs by registered investment advisers (RIAs) and multifamily offices as “stealthy but significant.” He notes that major financial entities are discreetly conducting comprehensive assessments of the Bitcoin market.
According to Farside data, GBTC saw outflows of $17.5 million on April 10, a significant decrease from the $154.9 million outflows recorded on April 9. The lowest outflow was on Feb. 26 when GBTC saw an outflow of $22.4 million. The daily average outflow of GBTC since January is $257.8 million.
GBTC was launched in 2015 and converted to an ETF in January, along with the launch of nine other spot Bitcoin ETFs after Grayscale won a lawsuit against the U.S. Securities and Exchange Commission, which forced a review of its previously denied GBTC conversion bid.
In a related development, bankrupt crypto lending firm Genesis recently acquired 32,041 BTC by selling approximately 36 million GBTC shares.
In the world of hip hop, there is a growing affinity for cryptocurrencies, with many hip hop stars embracing Bitcoin as a means of financial empowerment.