Bitwise CEO Predicts Wealth Management Firms Will Skyrocket Bitcoin ETF Investments

The forecast reflects the rising demand for exchange-traded funds (ETFs), as indicated by recent positive inflows in the U.S. Bitcoin ETF market.

Bitwise CEO Hunter Horsley expects wealth management firms to increase their Bitcoin ETF holdings. This prediction comes at a time when Bitcoin ETFs are anticipated to gain more traction following the halving.

Horsley’s prediction aligns with the market sentiment that demand for ETFs is on the rise, with U.S. Bitcoin ETF investments seeing a net positive inflow just before the halving, following five consecutive days of outflows.

BlackRock’s iShares Bitcoin Trust (IBIT) is rapidly catching up to Grayscale’s Bitcoin Trust (GBTC), trailing by just $2 billion. This sets BlackRock on a course to potentially overtake Grayscale as the largest Bitcoin fund. Grayscale’s Bitcoin Trust faced a 68-day decline, losing nearly $16 billion in value, bringing its total assets to $19.4 billion.

Conversely, IBIT experienced consistent asset growth, accumulating roughly $17.3 billion in total assets. However, Grayscale’s spot Bitcoin ETF saw significant capital outflows. In the last five days alone, investors withdrew $89.9 million, contributing to a net outflow of $1.6 billion since January.

Although Grayscale initially led the Bitcoin ETF market, its dominance is waning. Fidelity and BlackRock quickly captured substantial market shares as soon as trading began. For example, Fidelity and BlackRock Bitcoin ETFs saw net inflows of $37.3 million and $18.7 million, respectively, in the same week, providing some relief to the market’s liquidity issues.

The CEO of Bitwise described the adoption of Bitcoin ETFs by registered investment advisers (RIAs) and multifamily offices as “stealthy but significant.” He indicated that major financial institutions are quietly conducting extensive assessments of the Bitcoin market.

According to Farside data, GBTC experienced outflows of $17.5 million on April 10, a significant drop from the $154.9 million outflows recorded on April 9. The previous low was on February 26, when GBTC saw an outflow of $22.4 million. The average daily outflow for GBTC since January has been $257.8 million.

GBTC was launched in 2015 and converted to an ETF in January, coinciding with the launch of nine other spot Bitcoin ETFs after Grayscale won a lawsuit against the United States Securities and Exchange Commission, which required it to review a previous denial of a GBTC conversion bid.

The bankrupt crypto lending firm Genesis recently sold around 36 million GBTC shares to acquire 32,041 Bitcoin.

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