- Bitwise CEO Hunter Horsley predicts more wealth management firms will hold Bitcoin ETFs after recent halving events.
- BlackRock’s iShares Bitcoin Trust nears becoming the largest Bitcoin fund, challenging Grayscale’s current lead.
- Despite a period of outflows, the sector sees potential recovery with steady inflows into Bitcoin ETFs like those from Fidelity and BlackRock.
With the cryptocurrency market continually evolving, Hunter Horsley, CEO of Bitwise, has expressed optimism about the future of Bitcoin exchange-traded funds (ETFs), particularly after the Bitcoin halving. He sees a significant shift with more wealth management firms likely to increase their investments in Bitcoin ETFs. This outlook resonates with broader market sentiments that foresee a rising demand for these financial products.
ETFs Drawing Attention
As the market adjusts post-halving, Bitcoin ETFs have been drawing considerable attention, with funds like BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Bitcoin ETF experiencing notable inflows. IBIT, in particular, has shown remarkable growth, with assets reaching approximately $17.3 billion, positioning it close to overtaking Grayscale’s Bitcoin Trust (GBTC), which has been leading as the largest Bitcoin fund worldwide.
GBTC, however, has seen a decline over recent months, with a significant drop in asset value. The fund’s assets diminished by nearly $16 billion over 68 days, decreasing to $19.4 billion. This contrasts sharply with IBIT’s upward trajectory and consistent asset growth. The last few days have been particularly challenging for Grayscale, witnessing substantial capital outflows.
Market Shifts and Predictions
Despite these challenges, there is optimism in the air. BlackRock and Fidelity, for example, reported inflows of $18.7 million and $37.3 million respectively in a single week, hinting at a recovery and potential stabilization in the market. This positive movement provides a glimpse into the evolving landscape of cryptocurrency investments, where dynamics shift quickly, and new leaders emerge.
Horsley’s comments underscore a quiet but impactful shift towards Bitcoin ETFs among registered investment advisers (RIAs) and multifamily offices, highlighting a stealthy yet significant adoption rate. The financial assessments being conducted by major financial entities suggest a thorough and calculated approach to cryptocurrency investment, indicating maturity and strategic planning within the sector.
