Investment advisors are adopting Bitcoin exchange-traded funds (ETFs) at an unprecedented pace, according to Matt Hougan, Chief Investment Officer of Bitwise Investments post.
Investment advisors are adopting Bitcoin exchange-traded funds (ETFs) at an unprecedented pace, according to Matt Hougan, Chief Investment Officer of Bitwise Investments post.
He stated that investment advisors have allocated approximately $1.5 billion to BlackRock's recently launched spot Bitcoin ETF, indicating a significant interest in the cryptocurrency investment vehicle.
Hougan's remarks were made in response to market researcher Jim Bianco, who suggested on social media platform X that the adoption of spot Bitcoin ETFs by financial advisors has been limited.
Bianco noted that most inflows into these ETFs appeared to come from existing on-chain holders transitioning back to traditional finance accounts, implying little new capital was entering the cryptocurrency space.
In defense of the growing interest in Bitcoin ETFs, Hougan highlighted that if only the $1.5 billion from investment advisors is considered, BlackRock's IBIT fund would rank as the second fastest-growing ETF launched this year, excluding other Bitcoin ETFs. This year has seen over 300 new ETFs introduced to the market.
Bloomberg ETF analyst Eric Balchunas supported Hougan's view, stating that the advisor allocations for BlackRock's spot Bitcoin ETF represent the highest level of organic inflows for any ETF launched in 2023.
Currently, Bitwise's spot Bitcoin ETF holds around $2 billion in assets under management (AUM), while BlackRock's IBIT fund leads the market with nearly $20 billion in AUM.
The contrasting views on the adoption of Bitcoin ETFs underscore the ongoing debate within the investment community regarding the future of cryptocurrency in traditional financial markets.
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