Author: Amaka Nwaokocha, CoinTelegraph; Translated by: Deng Tong, Jinse Finance
Bitwise CEO Hunter Horsley has predicted that wealth managers will increase their holdings of Bitcoin exchange-traded funds (ETFs). The prediction comes as Bitcoin ETFs are expected to gain more attention after the halving.
Horsley’s prediction is in line with the broader market belief that demand for ETFs is increasing, as bitcoin investments in the U.S. exchange-traded fund (ETF) market recorded net positive inflows ahead of Bitcoin’s halving day after five consecutive days of losses.
BlackRock’s iShares Bitcoin Trust (IBIT) is closing the gap with Grayscale, with just $2 billion left. This puts BlackRock on track to surpass Grayscale as the world’s largest Bitcoin fund. Grayscale’s Bitcoin Trust (GBTC) experienced a 68-day decline in value, losing nearly $16 billion and reducing assets to $19.4 billion.
Source: Hunter Horsley
In contrast, IBIT assets have continued to grow, reaching total assets of approximately $17.3 billion. However, Grayscale's spot Bitcoin ETF has seen significant capital outflows. In the past five days alone, investors have withdrawn $89.9 million, resulting in a net outflow of $1.6 billion since January.
Despite its early lead, Grayscale’s dominance in the Bitcoin ETF market appears to be waning. Fidelity and BlackRock quickly gained a lot of market share after trading began. For example, the Fidelity and BlackRock Bitcoin ETFs saw net inflows of $37.3 million and $18.7 million, respectively, in the same week, alleviating some of the market’s liquidity issues.
The Bitwise CEO described the adoption of Bitcoin ETFs by registered investment advisors (RIAs) and multi-family offices as “stealthy but significant.” He noted that major financial entities are carefully and thoroughly evaluating the Bitcoin market.
According to Farside data, GBTC outflows on April 10 were $17.5 million, a significant decrease from the $154.9 million outflow recorded on April 9. The previous low was on February 26, when GBTC outflows were $22.4 million. Since January, GBTC's average daily outflow has been $257.8 million.
GBTC was launched in 2015 and converted into an ETF in January, and Grayscale has also launched nine other spot Bitcoin ETFs after Grayscale won a lawsuit against the U.S. Securities and Exchange Commission, forcing it to review a previously rejected GBTC conversion offer.
Bankrupt cryptocurrency lending company Genesis recently sold approximately 36 million shares of GBTC to acquire 32,041 Bitcoins.
