Bitwise CEO Hunter Horsley anticipates a rise in Bitcoin exchange-traded funds (ETFs) holdings by wealth management firms, coinciding with expectations of increased ETF traction post-halving.
Recent data shows a net positive inflow into Bitcoin investments in US ETFs market right before the halving, following a streak of five consecutive days of drain.
BlackRock’s iShares Bitcoin Trust (IBIT) is closing the gap with Grayscale’s Bitcoin Trust (GBTC), positioning itself to potentially surpass Grayscale as the world’s largest Bitcoin fund, with only a $2 billion difference.
GBTC experienced a 68-day period of value decline, shedding nearly $16 billion and reducing its assets to $19.4 billion, while IBIT witnessed continuous asset growth, reaching approximately $17.3 billion.
Notable capital outflows have been observed from Grayscale’s spot Bitcoin ETF, with investors withdrawing $89.9 million over the last five days, contributing to a net outflow of $1.6 billion since January.
Despite Grayscale’s early lead, its supremacy in the Bitcoin ETF market seems to be waning, with Fidelity and BlackRock quickly gaining substantial market shares.
Horsley describes the adoption of Bitcoin ETFs by registered investment advisers (RIAs) and multifamily offices as “stealthy but significant,” indicating discreet assessments of the Bitcoin market by major financial entities.
Recent data from Farside indicates fluctuating outflows from GBTC, with a significant decrease on April 10 compared to previous days.
GBTC, 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.
Bankrupt crypto lending firm Genesis recently sold approximately 36 million GBTC shares to acquire 32,041 Bitcoin.
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