Bitcoin ETF To Grab $5B AUM From Over 700 Institutional Investors: Bitwise CIO

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As a researcher with a background in finance and experience in following the cryptocurrency market, I am excited to see the significant progress being made by Bitcoin ETFs among institutional investors. According to Bitwise CIO Matt Hougan’s memo, over 500 professional investment firms have already invested in these ETFs, with the number expected to exceed 700. This represents a substantial shift in perception towards Bitcoin as an asset class for institutional investors.

According to a memo from Bitwise CIO Matt Hougan, published on X by Bitwise, institutional investors are increasingly turning to Bitcoins exchange-traded funds (ETFs). Over 500 professional investment firms have already invested in these Bitcoin ETFs, and the number is projected to exceed 700.

Bitcoin ETF’s Institutional Adoption To Sustain Momentum

Approximately 700 institutions are anticipated to have filed by the May 15 deadline, according to Bitwise CIO’s expectations. This figure could significantly increase the total assets under management (AUM) for these institutional players, bringing the total closer to $5 billion. In Hogan’s memo, Bitwise underscored three essential points.

Professional firms are rapidly accumulating Bitcoin ETFs; as of May 9, over 500 firms were reported to hold approximately $3.5 billion in these funds. This level of institutional ownership for a new ETF is unprecedented, surpassing the number of filers that typically invest in newly launched ETFs during their early market tenure.

Thirdly, retail investors hold about 90-93% of Bitcoin ETF assets at present, while professional investors own a smaller percentage, roughly 7-10%. Yet, this may be an early indication of larger institutional investments to come.

Horsley, CEO of Bitwise, highlighted the evolving views towards owning Bitcoin. In reference to Hougan’s note, he remarked, “Initially, they believed only the eccentric online community owned Bitcoin. Later, they thought it was just the retail sector.”

As a crypto investor, I’ve noticed an exciting development: the CEO of Bitwise has announced the surge in institutional adoption of Bitcoin ETFs. With over 500 wealth firms, banks, and institutional investors purchasing Bitcoin within just the first 2.5 months, this trend is undeniably gaining momentum. However, I anticipate that Bitcoin skeptics will raise objections. Horsley, the CEO, mused aloud, “Given this significant investment, I’m curious to see what their next move or argument will be.”

Millennium Management Emerges As Biggest Holder In Spot BTC ETFs

As a researcher, I’ve noticed an increasing trend among investment firms towards Bitcoin Exchange-Traded Funds (ETFs). Following this pattern, Millennium Management has revealed its substantial investment in these Bitcoin ETFs through its 13F-HR SEC filing. With approximately $2 billion committed to various Bitcoin ETFs, Millennium Management now holds the largest stake in these funds.

The firm holds substantial investments in three different Bitcoin funds: $844.18 million in BlackRock’s iShares Bitcoin Trust (IBIT), $806.64 million in Fidelity Wise Origin Bitcoin Fund (FBTC), and $202.02 million in Grayscale Bitcoin Trust (GBTC).

Additionally, Millennium Investments contributed approximately $89.7 million to both the ARK 21Shares’ ARKB ETF and Bitwise’s BITB ETF. With this investment, Millennium now holds around a 3% stake in Bitcoin ETFs, totaling nearly $2 billion from its $64 billion asset base. This substantial allocation by such a prominent institutional investor highlights the expanding role of Bitcoin ETFs within the conventional financial sector.

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2024-05-16 12:02