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Wealth Management Firms’ Bitcoin ETF Holdings Expected to Increase After Halving

Wealth Management Firms' Bitcoin ETF Holdings Expected to Increase After Halving

Key Points:

Wealth managers expected to increase Bitcoin ETF holdings post-halving.
Quarterly statements reveal growing client participation in BlackRock’s iShares Bitcoin Trust.
Accessible Bitcoin ETFs may prompt $50-100 billion fund inflows in 2024, say analysts.

Wealth management firms are anticipated to significantly increase their Bitcoin ETF holdings, according to Hunter Horsley, CEO of Bitwise. This forecast aligns with the growing traction of Bitcoin ETFs, particularly post-halving.

Wealth Managers Predict Surge in Bitcoin ETF Holdings

Quarterly statements from various financial entities, including funds and banks, are beginning to reveal ownership details of BlackRock’s iShares Bitcoin Trust (IBIT).

Eric Balchunas, an analyst at Bloomberg Intelligence, noted that approximately 60 entities hold a modest 0.4% of the IBIT’s total shares. The majority of these entities, as per Balchunas, own less than $1 million worth of IBIT shares, based on the firm’s quarterly statements.

Analysts Anticipate Billions in Fund Inflows with Accessible Bitcoin ETFs

The optimism surrounding Bitcoin ETFs is bolstered by the stellar performance of industry giants like BlackRock and Fidelity. With Bitcoin ETFs now trading on U.S. public markets, significant money managers previously sidelined from cryptocurrency markets can now access the primary digital asset.

The rise of Bitcoin ETF holdings could signal a significant shift for the $30 trillion wealth management industry. Analysts at Standard Chartered anticipate substantial fund inflows ranging from $50 billion to $100 billion throughout 2024, potentially opening the floodgates for institutional investment in cryptocurrency.

With the current growth of the crypto market, all eyes are on Bitcoin’s halving this week. Even while previous halvings have caused bitcoin to soar in value, a number of industry studies suggest that the current supply-and-demand dynamics of the cryptocurrency may be more influenced by the spot Bitcoin ETF market.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.