Institutions Flock to Bitcoin in Raging Bull Market: Bitwise Exec
Bitwise’s chief investment officer, Matthew Hougan, predicts that institutional investors will invest around $1 trillion into Bitcoin through exchange-traded funds (ETFs) as they slowly enter the cryptocurrency market. In a memo addressed to investment professionals, Hougan acknowledged concerns about Bitcoin’s price volatility. He advised that the best approach is to remain calm and adopt a long-term perspective. Despite the current instability, Hougan pointed out several upcoming events that could positively impact Bitcoin, such as the Bitcoin halving and the approval of spot Bitcoin ETFs on national account platforms like Morgan Stanley or Wells Fargo.
Hougan emphasized that investment committees and consultants are still conducting formal due diligence on Bitcoin before allocating funds to the asset. He explained that waiting for these key events will likely result in sideways movement for BTC whenever there are slight changes in sentiment. Hougan believes that the long-term prospects for Bitcoin are promising. He stated that Bitcoin is currently in a strong bull market, with a nearly 300% increase in value over the past 15 months. He attributed this growth to the recent approval of spot Bitcoin ETFs in January, which has opened up the cryptocurrency market to investment professionals on a larger scale.
Hougan also mentioned that the inflow of $12 billion into ETFs since their launch is remarkable and constitutes the most successful ETF launch in history. He believes that the real breakthrough will occur when global wealth managers begin allocating 1% of their portfolios to Bitcoin. This would result in approximately $1 trillion flowing into the cryptocurrency space. Hougan described the current inflow of $12 billion as a mere down payment in comparison.
According to Hougan, onboarding more professional investors into the crypto market will be a gradual process that takes years rather than months. He expressed optimism that as more institutional investors enter the market, the price of Bitcoin will continue to rise. Despite short-term fluctuations, Hougan believes that Bitcoin’s long-term potential is significant. He encouraged investment professionals to remain patient and focus on the promising future of the cryptocurrency.
6 thoughts on “Institutions Flock to Bitcoin in Raging Bull Market: Bitwise Exec”
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Formal due diligence sounds like a wise approach, but it also means we’ll have to wait even longer for any significant movement in BTC. It’s frustrating!
I don’t buy into the idea that onboarding more professional investors will automatically drive the price of Bitcoin up. It’s wishful thinking.
Bitcoin’s long-term potential may be significant, but what about the short-term? It’s hard to stay optimistic when the market is so unpredictable.
It’s encouraging to see someone like Matthew Hougan emphasizing the promising future of Bitcoin. Let’s stay focused and patient!
I just can’t see global wealth managers allocating 1% of their portfolios to Bitcoin. It’s too risky for a significant portion of their holdings. ❌
I’m not convinced that institutional investors will invest $1 trillion into Bitcoin. It seems like a huge amount considering the current volatility of the cryptocurrency market.