Bitwises Chief Investment Officer Forecasts 1 Trillion Bitcoin Inflow Through ETFs by Institutional Investors

Institutional investors are expected to invest up to $1 trillion in Bitcoin through exchange-traded funds (ETFs), according to Bitwise’s chief investment officer, Matthew Hougan. In a memo to investment experts, Hougan addressed concerns about Bitcoin’s price volatility and advised taking a long-term view. He also highlighted upcoming events such as the Bitcoin halving and the potential approval of spot Bitcoin ETFs by major platforms like Morgan Stanley or Wells Fargo. Hougan emphasized the importance of thorough due diligence before committing to Bitcoin investments. While waiting for these developments, he acknowledged that Bitcoin’s price may experience sideways movement due to minor sentiment shifts but remained optimistic about its future. Hougan noted the significant impact of the January approval of spot Bitcoin ETFs on the crypto market and predicted a gradual increase in interest from investment professionals managing trillions of dollars. He also suggested that allocating just 1% of global wealth managers’ portfolios to Bitcoin could lead to $1 trillion in inflows. Hougan proposed a December launch for spot Ethereum ETFs instead of May to allow Wall Street and traditional finance sectors more time to understand cryptocurrency complexities, particularly Bitcoin. He estimated that an eight to nine-month adjustment period is needed before considering another ETF.