Institutional Investors Eye Trillions Worth Asset Investment in Bitcoin ETFs by June
Summary:
Bitwise's Chief Investment Officer, Matt Hougan, has announced that large corporations, wirehouses, and institutional advisers are gearing up to invest in Bitcoin spot exchange-traded funds (ETFs) by the end of June. Bitwise has already confirmed that a variety of investors, hedge funds, and venture capital firms plan to increase their investment in Bitcoin ETFs. The surge in demand for these products is expected to continue and result in substantial inflows throughout 2024. These inflows have driven up Bitcoin prices and have already resulted in nearly $9 billion in net inflows since their introduction. BlackRock's Bitcoin ETF currently leads in new inflows.
Bitwise, a digital asset manager, has claimed that organizations which hold "trillions of dollars in assets" are set to invest in Bitcoin (BTC) spot exchange-traded funds (ETFs) by the end of June. In an investment memo dispatched to investors on March 9, Bitwise's chief investment officer, Matt Hougan, stated the firm was in "extensive due diligence" dialogues with sizable corporations, key wirehouses, and institutional advisors seeking to up their exposure to Bitcoin in the approaching months.
Hougan has confirmed that a varied set of private retail investors, family offices, hedge funds, and venture capital firms are planning to further invest in spot Bitcoin ETFs. He emphasized the importance of who will be investing in the future, beyond those investing now. According to several market analysts, the demand from institutions for Bitcoin ETFs has already significantly driven up the price of Bitcoin, propelling it by over 50% from $45,603 to $68,583 since its debut on Jan. 11.
Hougan stated that while nearly $9 billion in net inflows have already been generated by Bitcoin ETFs since they were introduced, he anticipates an upsurge in inflows into the ten sanctioned spot Bitcoin ETF products towards the second part of the year. He further mentioned that "based on current trends, it is likely that we will see substantial flows from these three groups in the second quarter of 2024, and I expect the flow to increase as the year progresses and as these investors become more familiar with the new products".
Previously, Hougan disclosed his optimistic outlook on Bitcoin ETFs, predicting a larger influx of institutional capital into these products, subsequently driving Bitcoin's price notably higher. BitMEX Research data indicates that Bitcoin ETFs have drawn net inflows of $8.89 billion since their launch, with BlackRock's iShares IBIT fund leading in new inflows.
On March 8, BlackRock's Bitcoin ETF overtook business intelligence firm MicroStrategy in the total Bitcoin held, boasting 197,943 Bitcoin on its balance sheet, valued at over $13.5 billion based on current rates.
Published At
3/11/2024 8:38:14 AM
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