Key Takeaways:
- Rising Investment in Bitcoin ETFs: Hunter Horsley, CEO of Bitwise, forecasts significant growth in investments by wealth management firms in Bitcoin ETFs, especially following the upcoming Bitcoin halving event, signaling a bullish market sentiment.
- Shift in Market Leaders: BlackRock’s iShares Bitcoin Trust (IBIT) is close to overtaking Grayscale as the leading Bitcoin fund, with IBIT showing robust growth and Grayscale experiencing substantial outflows and a decline in asset value.
- Institutional Adoption and Market Dynamics: Registered Investment Advisers and multifamily offices are increasingly adopting Bitcoin ETFs, contributing to market liquidity. Despite recent outflows, new entries like Fidelity and BlackRock’s ETFs are seeing positive inflows, enhancing their market shares.
Amid a noticeable surge in demand, Hunter Horsley, CEO of Bitwise, has indicated that wealth management firms are poised to escalate their holdings in Bitcoin exchange-traded funds (ETFs).
This growth is anticipated to accelerate following the Bitcoin halving event that recently happened.
By the end of 2024, people are going to be stunned by how many wealth management firms own a bitcoin ETF.
— Hunter Horsley (@HHorsley) April 20, 2024
They’re smart, many extremely well informed, and increasingly share conviction on Bitcoin. Oh, and they’re long only.
Going to be an amazing new constituent in the…
Horsley’s forecast resonates with the broader market sentiment that the allure of ETFs is on the rise, especially after the U.S. Bitcoin ETF market witnessed a significant reversal from a series of declines to positive inflows just before the halving.
This shift marks a crucial time as Bitcoin investments in ETFs have experienced a net inflow, contrasting with five prior days of reductions.
Amidst these developments, BlackRock’s iShares Bitcoin Trust (IBIT) is narrowing its gap with Grayscale, trailing by just $2 billion.
NEW: $IBIT is on schedule to surpass $GBTC in assets by the end of the month. GBTC currently holds a $2.3 billion lead, but IBIT is catching up.
— Simply Bitcoin (@SimplyBitcoinTV) April 16, 2024
According to @EricBalchunas , "A monster rally in BTC could delay it a bit, but I think 4/30 is a solid over/under date." pic.twitter.com/FssiOMRe3j
This puts BlackRock in a strong position to possibly overtake Grayscale as the leading Bitcoin fund globally.
During a challenging 68-day period, Grayscale’s Bitcoin Trust (GBTC) saw its value decrease by nearly $16 billion, bringing its assets down to $19.4 billion.
Conversely, IBIT has enjoyed continuous growth in its assets, which now stand at about $17.3 billion.
Despite this, Grayscale has witnessed significant capital outflows from its spot Bitcoin ETF, with $89.9 million withdrawn in the past five days alone, leading to a net outflow of $1.6 billion since the start of the year.
Yesterday, Bitcoin spot ETFs saw $36.67M in net outflows.
— Kyledoops (@kyledoops) April 16, 2024
Grayscale's GBTC took a hit with a $110M outflow. pic.twitter.com/kaoxTXArAy
As Grayscale’s dominance wanes, both Fidelity and BlackRock have been quick to capture significant market shares from the beginning of their trading activities.
Notably, the Bitcoin ETFs from Fidelity and BlackRock recorded net inflows of $37.3 million and $18.7 million respectively in a single week, aiding in addressing some liquidity concerns in the market.
Bitwise’s CEO also highlighted the quiet yet substantial adoption of Bitcoin ETFs by Registered Investment Advisers (RIAs) and multifamily offices.
Right now countless RIAs and multi-family offices are buying bitcoin and doing homework.
— Hunter Horsley (@HHorsley) April 19, 2024
But almost none of them are saying anything about it publicly. You can scour LinkedIn or firm websites, and you will be hard pressed to find mention of it.
This week I met with a large…
He pointed out that major financial institutions are discreetly yet rigorously evaluating the Bitcoin market.
Further data from Farside shows a decline in GBTC outflows, with $17.5 million leaving on April 10, a decrease from $154.9 million the previous day.
The daily average outflow for GBTC since January stands at $257.8 million.
Since its inception in 2015 and its conversion to an ETF in January—following a successful lawsuit against the U.S. Securities and Exchange Commission that forced a reconsideration of a previously denied conversion request—GBTC, alongside nine other spot Bitcoin ETFs, has been a significant player in the market.
💥BREAKING: Bankrupt Genesis Sold GBTC Shares to Acquire 32,041 #Bitcoin
— Crypto Rover (@rovercrc) April 5, 2024
In a related development, the bankrupt crypto lending company Genesis offloaded approximately 36 million GBTC shares to secure 32,041 Bitcoin.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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