Bitcoin ETF Holdings of Wealth Management Firms to Increase: Bitwise CEO

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Bitwise CEO Hunter Horsley has made a prediction regarding the increase in Bitcoin exchange-traded funds (ETFs) holdings by wealth management firms. His forecast comes at a time when BTC ETFs are anticipated to gain even more traction following the halving.

Horsley’s prediction is in line with the general market sentiment suggesting a growing demand for ETFs, particularly evident in the recent data. 

Bitcoin investments in the United States ETF market recorded a net positive inflow just before the BTC halving day, following five consecutive days of outflows. Currently, BTC is trading at approximately $64,904.

BlackRock vs. Grayscale

BlackRock’s iShares Bitcoin Trust (IBIT) is closing in on Grayscale’s Bitcoin Trust (GBTC), standing just $2 billion shy. This positions BlackRock to potentially overtake Grayscale as the world’s largest BTC fund. 

GBTC has experienced a 68-day period of value decline, shedding nearly $16 billion and reducing its assets to $19.4 billion.

Bitcoin ETFs and Asset Growth

In contrast, IBIT has seen continuous asset growth, reaching approximately $17.3 billion in total assets. As reported earlier by TheCoinRise, the cumulative trading volume for spot BTC ETFs surpassed the $200 billion mark earlier in April.

Notable capital outflows have been observed from Grayscale’s spot Bitcoin ETF, with investors withdrawing $89.9 million over the last five days alone, contributing to a net outflow of $1.6 billion since January.

Despite its early lead, Grayscale’s dominance in the BTC ETF market appears to be waning. Fidelity and BlackRock have quickly gained substantial market shares since the onset of trading. 

New Inflows in Spot Bitcoin ETFs

For instance, Fidelity and BlackRock Bitcoin ETFs experienced net inflows of $37.3 million and $18.7 million, respectively, in the same week, alleviating some of the market’s liquidity issues.

Horsley 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 thorough assessments of the Bitcoin market.

Grayscale Outflows

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 previous low was on Feb. 26 when GBTC experienced outflows of $22.4 million. The daily average outflow from GBTC since January has been $257.8 million.

GBTC, which launched in 2015, converted to an ETF in January, alongside the launch of nine other spot Bitcoin ETFs, after Grayscale won a lawsuit against the United States Securities and Exchange Commission, compelling it to review a GBTC conversion bid it previously denied.

Recently, bankrupt crypto lending firm Genesis offloaded approximately 36 million GBTC shares to acquire 32,041 Bitcoin.

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