Bitwise CEO Says Wealth Management Firms Will Increase Bitcoin ETF Holdings
There are many new developments from the Bitcoin spot ETFs launched in the US. For example, the growing demand for ETFs based on the net inflow projections within the US markets.
Bitwise CEO Hunter Horsley has predicted that wealth management firms are likely to increase their Bitcoin holdings in the upcoming months.
ETF Investment Interest
The prediction arrived at a time when Bitcoin ETFs are set to gain major traction after the halving event. Horsley noticed that his projections are in line with the broader market sentiment that ETF investment interest is likely to continue.
He further stated that Bitcoin investments in US markets have recorded a net positive inflow right before the Bitcoin halving day following five consecutive days of drainage.
BlackRock iShares Bitcoin Trust (IBIT) is rapidly bridging the gap with Grayscale with only $2 billion to match the top. In this manner, BlackRcok will soon surpass Grayscale as the largest Bitcoin Trust in the world.
Grayscale Bitcoin Trust (GBTC) is set to undergo a 68-day period of evaluation drop. The trust has she about $16 billion and shrank its assets to just $20 billion. In contrast, IBIT has undergone continuous asset growth reaching around $17.3 billion in total holdings.
Grayscale and BlackRock to Compete for Number One Spot as Biggest Bitcoin Trust
Grayscale spot Bitcoin have reported massive outflows during the last few months. During the last 5 days, investors liquidated around $89.9 million leading to outflows of $1.6 billion since the first month of 2024. Regardless of an early lead, Grayscale has retained its supremacy in the Bitcoin ETF sector which is also rapidly waning.
Fidelity and BlackRock are closing in the gap with substantial market gains from trading onset. The cumulative net flow of Fidelity and BlackRock-launched Bitcoin spot ETFs is around $37.3 million and $18.7 million subsequently.
During the 7 days, these metrics have provided some relief for liquidity crunch. Bitwise CEO noticed that Bitcoin ETF adoption of registered investment advisers (RIAs) and multi-family offices are operating in a stealthy but effective manner.
He further stated that major financial institutions are discreetly assessing the viability of the Bitcoin market. As per data projections from Farside, GBTC outflows were recorded to be around $17.5 million as of 10th April.
This number is a significant decline from $154.0 million in outflows as recorded on 9th April 2024. The previous law was noticed on 26th February 2024 when GBTC reported $22.4 million in net outflows.
Grayscale’s Entry in the ETF Market
GBTC was launched in 2015 and transformed into ETF in 2024. The launch of spot Bitcoin ETFs transpired after Grayscale won the lawsuit against SEC that prompted the regulatory agency to review the GBTC application to convert the fund into an ETF.
After February, the daily average outflow of GBTC is noticed around $257.8 million. Bankrupt lending firm Genesis also liquidated around 36 million GBTC shares to purchase an additional of 32,041 Bitcoins.
The total sales amount of the purchase was noticed to be around $2.1 billion which was finalized on 2nd April at an average per unit price of $65,685. Genesis intends to utilize Bitcoin to repay creditors.
Coinbase commented that the proceeds from selling GBTC shares are going to remain within the crypto sector. Bloomberg report confirmed that Genesis liquidated around 36 million GBTC shares on 2nd April at an average price of $58.50 per unit.
Coinbase noticed that the proceeds from the sales are likely to be reinvested in digital assets that will maintain a neutral impact on wider market prices. Genesis noticed that GBTC share conversion into underlying Bitcoin assets or selling shares outright and distributing the cash among investors.
The decision arrived after Digital Currency Group (DCG) criticized subsidiary Genesis for paying customers more than their investment stakes.
