As the second quarter approaches, a significant wave of institutional investment is about to enter the Bitcoin ETF market, according to Matt Hougan, CIO at Bitwise. Hougan shared valuable insights in a weekly memo to investors, highlighting the preparation of entities controlling trillions of dollars in assets to dive into the Bitcoin space through spot ETFs.
At the time of publication, the price of BTC was quoted at US$68.357,54, up 2% in the last 24 hours.
This move is fueled by in-depth due diligence discussions between Bitwise and several large financial institutions and corporates eager to get a slice of the Bitcoin market. Hougan pointed out that a diverse range of participants, including large wirehouses, institutional advisors and renowned corporations, are lined up to begin the first significant investments in Bitcoin in the coming quarter. These investment flows, according to him, should gain speed as the year progresses.
The question of who is driving this unprecedented interest was partially answered by Hougan, as he revealed that a wide range of investors, from individuals to sophisticated entities like hedge funds and asset managers, have shown strong interest.
“The introduction of Bitcoin ETFs was heralded as a bridge for professional investors to enter the Bitcoin market. Our experience over the past seven weeks emphatically confirms this,” wrote Matt Hougan.
Who's Buying Bitcoin ETFs (As Far As We Know)
An excerpt from Bitwise CIO @Matt_Hougan's weekly memo to investment professionals.
Bitcoin ETFs have attracted more than $7.5 billion in net new assets since launching in the US on January 11, making many of them among the most… pic.twitter.com/jyIZHUsbn6
— Bitwise (@BitwiseInvest) March 8, 2024
The memo also highlighted that registered investors, family offices and venture capital funds are among those who have allocated exposure to BTC, highlighting widespread confidence in the potential of these ETFs.
