Kelvin Daminabo
Bitwise’s CIO, Matthew Hougan, foresees institutional investors funneling up to $1 trillion into Bitcoin via ETFs as they gradually enter the crypto sphere. Addressing concerns about Bitcoin’s price volatility in a memo to investment experts, Hougan advises a calm approach with a long-term view amidst fluctuations between $60k and $70k. He highlights upcoming events like the Bitcoin halving and potential approval of spot Bitcoin ETFs by major platforms such as Morgan Stanley or Wells Fargo.
Hougan stresses the importance of investment committees and consultants conducting due diligence before diving into Bitcoin investments. While awaiting developments, he expects sideways movement in Bitcoin’s price due to minor sentiment shifts but remains optimistic about its future, citing a robust bull market with nearly 300% growth over the past 15 months.
The approval of spot Bitcoin ETFs in January opened the crypto market to investment professionals, leading to a $12 billion influx into ETFs since their launch, which Hougan calls the most successful ETF debut. He believes that if global wealth managers allocate just 1% of their portfolios to Bitcoin, it could lead to $1 trillion in inflows, dwarfing the initial $12 billion.
Hougan also suggests that spot Ethereum ETFs could attract more assets if launched after May, proposing a December launch for a more beneficial outcome. He estimates an eight to nine-month period for Wall Street to adjust to Bitcoin before considering another ETF launch.