United

Bitcoin ETF

Bitcoin

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Professional investors are increasingly considering a 3% allocation to Bitcoin, according to Bitwise CIO Matt Hougan.</li>
 <li>The launch of U.S. spot Bitcoin exchange-traded funds (ETFs) has been a significant factor in this shift.</li>
</ul>
<p>Matt Hougan, Chief Investment Officer (CIO) at Bitwise, has observed a growing trend among professional investors towards a 3% allocation to <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin</a>.</p>
<p>Hougan has been discussing Bitcoin investment with professionals since 2018, and for the majority of that time, the focus was on a 1% allocation. However, he has noted a significant change in this mindset lately.</p>
<h2 id="spot-bitcoin-etfs-influence-investment-allocations">Spot Bitcoin ETFs Influence Investment Allocations</h2>
<p>The CIO attributes this shift to the recent introduction of U.S. spot Bitcoin ETFs. These funds have reduced the risk of Bitcoin investments, making larger allocations more appealing.</p>
<p>“If ‘going to zero’ is off the table, 3% or 5% starts to make more sense,” Hougan stated. While institutional investors such as pensions and endowments may still prefer sub 1% allocations, the wealth market is increasingly looking towards a 3% allocation.</p>
<p>Hougan also highlighted the $11.7 billion net inflows into U.S. spot Bitcoin ETFs since their launch just over two months ago. He believes this indicates a long-term sustained demand that will persist for years.</p>
<h2 id="bitcoin-etf-adoption-varies">Bitcoin ETF Adoption Varies</h2>
<p>The pace of Bitcoin ETF adoption varies significantly, with some financial advisors already allocating 3% for all their clients, while others have not yet considered it. Hougan also pointed out that the United Kingdom lags behind the United States in investor demand for Bitcoin ETFs.</p>
<p>“Most professional investors still cannot buy Bitcoin ETFs. That will change through a series of 100+ individual due diligence processes over the next two years,” he said. As for the impact of Bitcoin rebalancing on the market, Hougan expects it to slightly dampen volatility.</p>
<p>Notably, Bitwise is among the 11 providers of spot Bitcoin ETFs in the United States. Its BITB product ranks fifth among these ETFs, with approximately $2 billion in assets under management. Furthermore, the spot Bitcoin ETFs had a particularly successful day recently, generating $418 million in net inflows.</p>
<p>Lastly, the trading of Tidal and Hashdex’s DEFI spot Bitcoin ETF began after the completion of its futures fund conversion.</p>

Bitwise CIO Predicts 3% Bitcoin Allocation in the Wealth Market

Table of Contents

crypto.ro global

Other articles published on Mar 27, 2024

KuCoin Token Price Prediction: KCS Plunges 15% As KuCoin Charged By DoJ And Traders Rush To This ...

VanEck Advisor Voices Dismay Over Crypto Regulations Stifling Innovation

Stellar Crypto Price Forecast: Will XLM Reach New Highs Any Time Soon?

Aptos (APT) Token Surges, NEAR Price Stabilizes, and Algotech’s 1200x Potential Unfolds

Redefining Mining Profits: ARKMining Free Cloud Mining Brings Stable Passive Income Every Day

Coinbase SEC Lawsuit: Here’s What Comes Next After Key Ruling

Join our free newsletter for daily crypto updates!