Bitwise CEO, Hunter Horsley, has made some interesting predictions about the future of Bitcoin exchange-traded funds (ETFs). While he believes that asset managers will increase their holdings in Bitcoin ETFs, he is not concerned about the decline of the Grayscale Bitcoin Trust. This comes at a time when Bitcoin ETFs are gaining popularity worldwide.
Horsley’s predictions align with the general sentiment in the market, which suggests that there will be a surge in investments in ETFs as Bitcoin continues to grow in popularity. BlackRock’s iShares Bitcoin Trust (IBIT) is currently competing with Grayscale for the top spot, with only a $2 billion difference between them. If this trend continues, BlackRock may soon surpass Grayscale and become the largest Bitcoin fund globally.
While Grayscale’s price has dropped significantly in the past 68 days, losing $1.6 billion, IBIT’s assets have steadily grown to $17.3 billion. Additionally, Grayscale’s Bitcoin ETF has experienced significant outflows, with investors withdrawing $89.9 million in the last 5 working days, leading to a total net outflow of $1.6 billion since January.
Despite Grayscale’s early adoption of BTC, it is falling behind in the competition for Bitcoin ETFs. Fidelity and BlackRock have quickly gained market shares and received investments of $37.3 million and $18.7 million, respectively, in the same week. This has helped alleviate the market’s liquidity issues, as noted by Bitwise CEO, particularly among registered investment advisers (RIAs) and multifamily offices.
Data from Farside shows that GBTC experienced outflows of $17.5 million on April 10, a significant decrease compared to the $154.9 million outflows recorded on April 9. The worst day for GBTC was on February 26, when it lost $22.4 million.
GBTC, a spot Bitcoin ETF established in 2015, has a successful history, including winning a lawsuit against the U.S. Securities and Exchange Commission.
