According to recent favourable inflows in the U.S. Bitcoin ETF market, there is an increasing demand for ETFs, which is reflected in the prediction.
Wealth management companies will own more Bitcoin exchange-traded funds (ETFs) than they did a year ago, according to Bitwise CEO Hunter Horsley. As the halving is predicted to occur, the prediction coincides with the expectation that Bitcoin ETFs would become even more popular.
In light of the fact that Bitcoin has increased in value, Horsley’s forecast is consistent with the general market view that Just before the day of the Bitcoin halving, American exchange-traded funds (ETFs) had a net positive influx of assets after five days of losses.
BlackRock’s iShares Bitcoin Trust (IBIT), which is currently only $2 billion short of Grayscale’s, is getting closer. This puts BlackRock in a position to overtake Grayscale as the biggest Bitcoin fund globally. After a 68-day period of declining value, Grayscale’s Bitcoin Trust (GBTC) saw its assets drop to $19.4 billion from $16 billion.
IBIT, on the other hand, showed consistent asset growth, with its total assets reaching about $17.3 billion. But there have been noticeable withdrawals of capital from Grayscale’s spot Bitcoin ETF. Investor withdrawals totaled $89.9 million in just the last five days, making a net outflow of $1.6 billion since January.
Grayscale appears to be losing ground in the Bitcoin ETF market, despite having an early advantage. As soon as trading began, Fidelity and BlackRock immediately grew their market shares significantly. For example, in the same week, net inflows of $37.3 million and $18.7 million into the Fidelity and BlackRock Bitcoin ETFs, respectively, alleviated some of the market’s liquidity problems.
The CEO of Bitwise characterises the acceptance of Bitcoin ETFs by multifamily offices and registered investment advisers (RIAs) as “stealthy but significant.” He points out that large financial institutions are covertly evaluating the Bitcoin industry in-depth.
Farside data shows that on April 10, GBTC experienced withdrawals of $17.5 million, which is a considerable drop from the $154.9 million outflows that were noted on April 9.
When GBTC outflowed $22.4 million on February 26, it reached its prior low. Since January, the average daily outflow of GBTC has been $257.8 million.
Launched in 2015, GBTC was converted to an ETF in January along with the introduction of nine additional spot Bitcoin ETFs following Grayscale’s successful legal battle against the US Securities and Exchange Commission, which compelled the agency to examine a GBTC conversion offer that it had previously rejected.
Recently, the bankrupt cryptocurrency lending company Genesis sold over 36 million GBTC shares in order to buy 32,041 Bitcoin.