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Wealth Management Firms to Boost Bitcoin ETFs, Says Bitwise CEO

Algoine News
Summary:
Bitwise CEO, Hunter Horsley, forecasts a surge in Bitcoin exchange-traded funds (ETFs) held by wealth management firms. His prediction comes as Bitcoin ETFs are expected to receive more acceptance post-halving. BlackRock's iShares Bitcoin Trust (IBIT) is nearing Grayscale's size, hinting BlackRock’s potential to become the largest Bitcoin fund. Despite Grayscale's initial dominance, Fidelity and BlackRock have rapidly secured notable market shares. Horsley has highlighted the "unnoticeable but meaningful" uptake of Bitcoin ETFs by registered investment advisers and multifamily offices.
Hunter Horsley, the CEO of Bitwise, anticipates an upsurge in Bitcoin exchange-traded funds (ETFs) held by wealth management organizations. This forecast comes amidst rising expectations for further acceptance of Bitcoin ETFs post the halving event. Horsley's outlook corresponds to the overall market understanding of the growing demand for ETFs. This is demonstrated by the positive inflow seen in Bitcoin BTC investments in the U.S. ETFs market prior to Bitcoin's halving day, in contrast to the previous five days of outflow. BlackRock's iShares Bitcoin Trust (IBIT) is increasingly nearing the size of Grayscale's, standing only $2 billion away, moving BlackRock in position to possibly exceed Grayscale as the leading Bitcoin fund worldwide. Grayscale's Bitcoin Trust (GBTC) has endured a 68-day value drop, losing nearly $16 billion and leaving its assets at $19.4 billion. On the other hand, IBIT has persistently gained in assets, reaching around $17.3 billion in total. However, Grayscale’s Bitcoin ETF faced substantial capital drawdowns. In the past five days, investors pulled out $89.9 million, adding to a total outflow of $1.6 billion since the start of the year. Despite its initial dominance, Grayscale's might in the Bitcoin ETF market seems to be waning as Fidelity and BlackRock promptly captured significant market shares from the beginning of trading. For instance, Fidelity and BlackRock Bitcoin ETFs received net inflows of $37.3 million and $18.7 million within the same week, relieving some of the market liquidity difficulties. Horsley characterizes the uptake of Bitcoin ETFs by registered investment advisers (RIAs) and multifamily offices as "unnoticeable but meaningful", pointing out that prominent financial bodies are silently performing extensive evaluations of the Bitcoin market. Data from Farside displays GBTC experiencing outflows of $17.5 million on April 10, a marked dip from $154.9 million outflows recorded the day before. The prior low was on Feb. 26 when GBTC saw an outflow of $22.4 million. The average daily GBTC outflow since January is $257.8 million. GBTC was established in 2015 and transitioned to an ETF in January, accompanied by the debut of nine other spot Bitcoin ETFs after winning a lawsuit against the U.S. Securities and Exchange Commission, which required it to reconsider a previously rejected GBTC conversion proposal. Recently, the bankrupt crypto lending company, Genesis, sold off roughly 36 million GBTC shares to procure 32,041 Bitcoin.

Published At

4/21/2024 11:55:01 AM

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