Market dynamics shift as Bitcoin ETF competition heats up, Bitwise CEO claims

While Hunter Horsley, the CEO of Bitwise, has predicted the likelihood of asset managers increasing their Bitcoin (BTC) exchange-traded fund (ETF) holdings, he has simultaneously stated that he is totally unfazed by the demise of the Grayscale Bitcoin Trust. It is a good time, especially when Bitcoin ETFs are becoming even more popular.

The rise of Bitcoin ETFs

Horsley’s predictions, however, not by chance, completely match the general sentiment in the market that we may experience a surge in investing in ETFs since Bitcoin is also getting increasingly popular globally.

BlackRock’s iShares Bitcoin Trust (IBIT) is buzzing with action, hustling for the top spot, which is just $2 billion far away from Grayscale’s. The eventuality of this placing implies that blackrock will probably be at par and maybe at a higher level than Grayscale as the largest Bitcoin fund globally. 

GBTC’s price dropped prominently during its last 68 days, shedding $1.6B and adding to its total assets approximately $1.94B, compared to IBIT’s steady growth with assets capping at $17.3B. Contrarily, important of the capital made by Grayscale’s spot Bitcoin ETF exits was observed. Over the last 5 working days, investors have taken out $89.9 million, contributing to boosting the net outflows to $1.6 billion from January to date.

Changing market trends

Even though Grayscale’s in-depth adoption of BTC must be appreciated, it slowly falls behind in the competition for bitcoin ETFs. Following the sanctioned trading, Fidelity and BlackRock soon began to grow their market shares into great portions. Respectfully, Fidelity and BlackRock Bitcoin ETFs were recipients of investments of $37.3 million in $18.7 million in the same week. So, it relieves the market’s liquidity problems to a large extent. This is exactly as described by Bitwise CEO concerning the adoption of Bitcoin ETFs by registered investment advisers (RIAs) and multifamily offices

Per the Farside data, GBTC witnessed outflows of $17.5M on April 10, which is a highly reduced extent of the previously recorded $154.9M outflows on April 9. The day before, 26 February, was the worst day when GBTC drained $22.4 million. 

GBTC is a spot Bitcoin ETF that was established in 2015. It has a record of winning a lawsuit filed against the U.S. Securities and Exchange Commission.