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The cryptocurrency market, led by Bitcoin, has seen notable increases recently while significant announcements continue to emerge. Accordingly, Bitwise CEO Hunter Horsley anticipates that asset management firms will increase their interest in Bitcoin ETF funds. This prediction comes at a time when Bitcoin ETF funds are expected to attract even more interest following the halving event.
Famous Prediction on ETFs
Horsley’s prediction is consistent with a broader market belief that demand for ETF funds is increasing, considering that US spot investment funds in Bitcoin recorded a clear positive entry just before the Bitcoin halving event after five consecutive days of decline.
BlackRock’s iShares Bitcoin Trust (IBIT) is closing the gap with Grayscale, which is only $2 billion ahead. This positions BlackRock to potentially surpass Grayscale as the world’s largest Bitcoin fund. Grayscale Bitcoin Trust (GBTC) experienced a 68-day value loss, losing about $16 billion and reducing its assets to $19.4 billion.
In contrast, IBIT has been recording continuous asset growth, reaching approximately $17.3 billion in total assets. However, significant capital outflows were observed in Grayscale’s spot Bitcoin ETF fund. Investors withdrew $89.9 million in just the last five days, contributing to a net outflow of $1.6 billion since January.
Despite Grayscale’s initial leadership, its dominance in the Bitcoin ETF market seems to be waning. Fidelity and BlackRock have quickly gained significant market shares since the launch of the funds. For instance, Fidelity and BlackRock Bitcoin ETF funds experienced net entries of $37.3 million and $18.7 million, respectively, in the same week, which helped alleviate some of the market’s liquidity issues.
The CEO of Bitwise describes the adoption of Bitcoin ETF funds by registered investment advisors (RIAs) and multi-family offices as secretive but significant. He noted that major financial institutions are conducting thorough assessments of the Bitcoin market.
Notable Details in the ETF Space
According to Farside data, GBTC saw an outflow of $17.5 million on April 10th; this is a significant drop compared to the $154.9 million outflow recorded on April 9th. The previous lowest level was on February 26th, when GBTC had an outflow of $22.4 million. Since January, the daily average outflow from GBTC has been recorded at $257.8 million.
GBTC was launched in 2015 and was converted into an ETF fund in January after Grayscale won a lawsuit against the United States Securities and Exchange Commission, which forced it to reconsider a previously rejected GBTC conversion proposal following the launch of nine other spot Bitcoin ETF funds. The bankrupt crypto lending company Genesis recently transferred about 36 million GBTC shares to purchase approximately 32,041 Bitcoins.
