Bitcoin ETFs Expected to See Increased Holdings by Wealth Management Firms, Says Bitwise CEO Hunter Horsley

Bitcoin ETFs are gaining momentum in the wealth management industry, with Bitwise CEO Hunter Horsley predicting an increase in holdings by firms. This forecast comes at a time when Bitcoin ETFs are expected to see a surge in interest following the recent halving event. Horsley’s prediction aligns with the growing market sentiment towards ETFs, as evidenced by the strong performance of industry giants like Blackrock and Fidelity.

One notable development is the rise of BlackRock’s iShares Bitcoin Trust (IBIT), which is now closing in on Grayscale’s Bitcoin fund in terms of total assets. After a period of significant losses for Grayscale’s spot Bitcoin ETF (GBTC), investors have been withdrawing capital, leading to a net outflow of $1.6 billion since January. In contrast, IBIT has seen steady growth in assets, reaching approximately $17.3 billion.

Despite Grayscale’s early dominance in the Bitcoin ETF market, competitors like Fidelity and BlackRock are gaining ground with substantial net inflows. This shift in market dynamics suggests a broader trend towards increased adoption of Bitcoin ETFs by wealth management firms and investment advisers.

According to Horsley, major financial institutions are quietly exploring opportunities in the Bitcoin market, with a focus on incorporating the cryptocurrency into their portfolios. This trend, described as “stealthy but material” by Horsley, indicates a growing acceptance of Bitcoin among traditional financial players.

As the market prepares for the impact of the upcoming Bitcoin halving, the demand for Bitcoin ETFs is expected to rise further. With industry leaders like Blackrock and Fidelity leading the way, the future looks promising for Bitcoin ETFs in the wealth management sector.