Bitwise CEO, Hunter Horsley, anticipates a surge in Bitcoin exchange-traded funds (ETFs) holdings by wealth management firms, reflecting the growing demand for ETFs in the wake of recent positive inflows in the U.S. Bitcoin ETF market. Horsley's forecast aligns with the broader market sentiment, particularly as Bitcoin ETFs are poised to gain further momentum post-halving.

Recent data indicates a notable shift in the landscape, with BlackRock's iShares Bitcoin Trust (IBIT) rapidly narrowing the gap with Grayscale's Bitcoin Trust (GBTC), positioning itself to potentially surpass Grayscale as the world's largest Bitcoin fund. While GBTC experienced a 68-day period of value decline, shedding nearly $16 billion in assets, IBIT saw continuous growth, reaching approximately $17.3 billion in total assets.

However, significant capital outflows have been observed from Grayscale's spot Bitcoin ETF, with investors withdrawing $89.9 million over the last five days alone, contributing to a net outflow of $1.6 billion since January. In contrast, Fidelity and BlackRock Bitcoin ETFs have experienced substantial net inflows, addressing some of the market's liquidity concerns.

Horsley describes the adoption of Bitcoin ETFs by registered investment advisers (RIAs) and multifamily offices as "stealthy but significant," highlighting major financial entities' discreet yet thorough assessments of the Bitcoin market.

According to Farside data, GBTC saw a significant decrease in outflows on April 10, dropping to $17.5 million from $154.9 million on April 9. This marks a departure from the daily outflow average of $257.8 million since January.

GBTC's journey began in 2015 and transitioned into an ETF in January, alongside the launch of nine other spot Bitcoin ETFs after Grayscale's successful lawsuit against the United States Securities and Exchange Commission. Notably, bankrupt crypto lending firm Genesis recently exchanged approximately 36 million GBTC shares for 32,041 Bitcoin.