The tides are turning in the Bitcoin ETF market. Wealth management firms are poised to make a splash, according to Bitwise CEO Hunter Horsley. This prediction aligns with a growing appetite for ETFs, evidenced by recent inflows into US Bitcoin ETF products.

The upcoming Bitcoin halving, an event that cuts the number of new Bitcoins created in half, is expected to fuel even more excitement. Horsley highlights a strategic shift – investors are increasingly choosing ETFs over Grayscale's dominant Bitcoin Trust (GBTC).

BlackRock's iShares Bitcoin Trust (IBIT) is hot on GBTC's heels, threatening to steal the crown as the world's largest Bitcoin fund. While GBTC has seen a decline in value, IBIT has enjoyed steady growth, showcasing investor confidence in the ETF structure.

This changing landscape is further emphasized by Fidelity and BlackRock's Bitcoin ETFs experiencing significant inflows, providing much-needed liquidity to the market.

The trend isn't lost on industry experts. Bitwise CEO describes a "stealthy but significant" adoption of Bitcoin ETFs by financial advisors and family offices, suggesting a cautious yet growing embrace of this digital asset class.

Despite its early lead, GBTC seems to be losing steam. Daily outflows have dwindled compared to prior highs, but remain above average. This shift indicates a potential move away from GBTC and towards the newer, more accessible ETF options.

The recent lawsuit victory by Grayscale, forcing the SEC to review a conversion bid for GBTC to an ETF, may not be enough to save its dominance. The market is evolving, and wealth management firms are seeking the flexibility and familiarity offered by ETFs.

With the Bitcoin halving on the horizon and a growing acceptance of Bitcoin ETFs, the future looks bright for digital gold.