Bitwise CEO sees rise in Wealth Firm Bitcoin ETF investments

Bitwise CEO Hunter Horsley recently forecasted a substantial increase in the holdings of Bitcoin ETFs among wealth management companies by the end of 2024, highlighting rising confidence in crypto as a profitable investment even during the current market shifts. 

Based on the reports on CoinGape, this prediction is based on the expectation of Bitcoin ETFs to gain more traction after the Bitcoin halving event. The estimate of Horsley is consistent with the broader market notion of rising demand for Bitcoin ETFs, considering how well Fidelity and Blackrock have performed. 

People are expected to be surprised at the number of wealth management companies owning Bitcoin ETFs. They are smart and well-informed and have a rising share conviction on BTC. iShares Bitcoin Trust (IBIT) on Blackrock is currently $2 billion behind that of Grayscale, allowing the former to overtake as the largest Bitcoin fund in the world. This news came after GBTC lost approximately $16 billion during the last 60 days, thereby reducing the value of ETF assets to almost $19.4 billion. 

After continuous money absorption for 68 days, the total assets of IBIT have surged to around $17.3 billion. Major capital withdrawals have taken place from the spot BTC ETFs on Grayscale. Investors have already withdrawn $89.9 million from the market, giving a total net flow of $1.6 billion since January. 

The dominance that Grayscale has in the BTC ETFs market appears to be declining even with an early-mover advantage that it has. Blackrock and Fidelity started acquiring leading market shares immediately after all the trading activities began. For instance, during the same period, Blackrock and Fidelity Bitcoin ETFs had $37.3 million and $18.7 million net flows, respectively, assisting in alleviating some of the general liquidity issues in the market. 

The current scenario of crypto registration suggests a rising yet cautious shift that favors the banking industry’s specialist companies. Horsley stated that every leading financial institution must thoroughly examine the overall crypto and Bitcoin industry and describes the use of BTC ETFs as “stealthy but material”. He also commented on the Bitwise inquiry into BTC registration, which revealed a trend. The corporations have started to include BTC in their investment portfolios without revealing the information to the public.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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