Wealth Management Firms to Increase Bitcoin ETF Holdings, Says Bitwise CEO

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Wealth management firms are anticipated to boost their holdings in Bitcoin ETFs, as per Bitwise CEO Hunter Horsley’s forecast. This expectation arises as Bitcoin ETFs prepare for greater popularity following the halving event. Moreover, this prediction aligns with a widespread market conviction of increasing demand for ETFs, given the impressive performance of industry giants like Blackrock and Fidelity.

By the year 2024, it will be astonishing to see how many wealth management companies have acquired a bitcoin Exchange-Traded Fund (ETF).

A significant number of them are intelligent and knowledgeable about Bitcoin, with an growing number holding strong convictions regarding it. Moreover, they exclusively invest in this digital currency.

Going to be an amazing new constituent in the…

— Hunter Horsley (@HHorsley) April 20, 2024

Blackrock Bitcoin ETF Continues Market Dominance

BlackRock’s iShares Bitcoin Trust (IBIT) is just $2 billion away from surpassing Grayscale as the largest Bitcoin fund globally. This comes after a 68-day period during which Grayscale’s Bitcoin Trust (GBTC) experienced approximately $16 billion in value decreases, bringing its assets down to around $19.4 billion. In contrast, IBIT’s assets have grown steadily over the same timeframe, reaching about $17.3 billion.

Over the past five days, there has been a significant drain of investment funds from Grayscale’s Bitcoin Spot ETF (GBTC), amounting to $89.9 million. Since the beginning of January, this trend has led to a net withdrawal of approximately $1.6 billion.

Grayscale’s Outflows Not an Issue For MarketBitcoin

Although Grayscale held a strong position in the Bitcoin ETF market initially, its lead seems to be weakening. Fidelity and BlackRock have quickly gained substantial market shares since trading began. In one week alone, these two ETFs experienced net inflows of $37.3 million and $18.7 million respectively. These inflows played a significant role in improving the overall liquidity issues within the market.

Bitcoin ETFs to Gain More Traction in the Future

The trend in cryptocurrency registration indicates a gradual and careful shift towards banking institutions. Bitcoin ETFs have been quietly gaining traction among registered investment advisers (RIAs) and multifamily offices, with major financial players conducting thorough investigations into the Bitcoin market in private. (Bitwise CEO Hunter Horsley’s words)

In reaction to a Bitwise probe into Bitcoin registration this year revealing a similar pattern, Horsley made the following remarks. These businesses are quietly adding Bitcoin to their investments without making it public knowledge. As the Bitcoin halving approaches, these registrants should consider catering to increased demand by allowing more Bitcoin-related requests.

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2024-04-21 04:37