Daffy, a donor-advised fund platform, has selected Bitwise funds for cryptocurrency investments. This choice involves the launch of the BITB Bitcoin ETF, which indicates a shift from the prior reliance on the use of Vanguard funds. Hunter Horsley, the CEO of Bitwise, commended Daffy for its revolutionary mentality. He focused on the necessity of providing crypto exposure in the modern economy. The recommendation by Horsley highlights the growing demand for cryptocurrency investments by financial platforms.
There are now two options in Daffy’s portfolio for investors looking for crypto exposure. The Crypto-Diversified Conservative portfolio has a 5% allocation to Bitwise 10 Crypto Index Fund (BITW). On the other hand, in the Crypto-Diversified Aggressive portfolio, we have 10% allocated to the BITB Bitcoin ETF. The tactical option of Bitwise funds is designed to offer diversified cryptocurrency exposure. The shift is compatible with the broader development of including crypto assets in investment tactics.
Bitwise Bitcoin ETF’s popularity grows
BITB, the Bitwise Bitcoin ETF, has enjoyed tremendous momentum over the last few weeks. A big U.S. wealth platform has accepted the BITB for advisor access. This introduction enables advisors to speak to their clients about Bitcoin ETFs after months of due diligence. Horsley is honored to be a partner to them, signifying the increasing recognition of Bitwise’s offerings. It is a milestone for the Bitwise Bitcoin ETF equity approval, putting it under the category of strong rivals of the cryptocurrency funds.
In addition, net inflows of Spot Bitcoin ETFs have risen again. A combined inflow of $178 million was reported by all the nine Spot BTC ETFs on Thursday, March 28. This is a shift from the strong outflows that had occurred in the previous week. However, Grayscale Bitcoin ETF (GBTC) was the notable performer with an outflow cut of 60%, which indicates a shift in investor outlook. This influx highlights the increasing investor faith in Bitcoin ETFs as a legitimate investment instrument.
Competition and market dynamics
The competition among Bitcoin ETFs is becoming much fiercer. The outflows experienced by Grayscale’s GBTC are due to the high management fee. Investors are moving their money to other BTC ETFs like BlackRock and Fidelity, which have lower costs. The inflows for the IBIT Bitcoin ETF ($13.8 billion) are remarkable in the case of BlackRock. It is due to surpass GBTC in AUM.
This move highlights the significance of competitive pricing and management fees in the cryptocurrency ETF arena. The one for ETFs with smaller fees suggests a more budget-minded clientele. The changes in the field of crypto investments occur while ETFs such as IBIT become more popular. Such market dynamics are an indication of investors’ new preferences and priorities in the digital asset arena.
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