Bitwise Discloses Massive Investments In Bitcoin & Ethereum ETFs By Large RIA

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As a seasoned researcher with a keen eye for trends and patterns in the financial market, I find myself increasingly captivated by the dynamic evolution of Bitcoin and Ethereum ETFs. With years of experience under my belt, I’ve witnessed the rise and fall of numerous investment vehicles, but none have quite captured my attention like these digital assets.

A well-known crypto ETF provider, Bitwise, has experienced substantial investments in its Bitcoin and Ethereum ETFs from a prominent Investment Advisory Firm (IA). This move aligns with the growing trend of institutional interest in cryptocurrency ETFs. Over the weekend, Bitwise’s Bitcoin and Ethereum ETFs witnessed considerable inflows of funds.

Bitwise Bitcoin & Ethereum ETFs Attracts Investment From RIA

Hunter Horsley, CEO of Bitwise, disclosed on X that our firm has acquired multiple millions in value of Bitcoin ETF (BITB) and Ethereum ETF (ETHW). Moreover, we have also incorporated the Bitwise 10 Crypto Index (BITW) ETFs into various client portfolios. This latest move by us coincides with a period when Bitcoin ETFs are witnessing unprecedented investment inflows.

As an analyst, on Friday, August 23rd, I observed a significant influx of $252 million into Bitcoin ETFs, as per data from Farside UK. This weekly investment swelled to a total of $506.4 million, indicating a growing confidence among institutional and retail investors in the cryptocurrency market. With the Federal Reserve’s rate cuts looming, this surge is not surprising. Notably, BlackRock, the global leader in asset management, reported inflows of $86.8 million into their Bitcoin ETF, while Fidelity attracted a comparable $64 million.

Additionally, Bitwise demonstrated strong gains of approximately $42.3 million, solidifying its role as a significant figure in the crypto ETF market. Notably, Ark Invest, VanEck, and the BTC ETF also reported inflows of $23.8 million, $14.4 million, and $50.8 million respectively. On the flip side, Grayscale’s Bitcoin Trust (GBTC) faced outflows amounting to $35.6 million.

Despite Bitcoin ETFs attracting significant attention, Ether ETFs have encountered a tougher investment climate. For instance, on August 23 alone, ETH ETFs experienced net withdrawals worth $5.7 million, adding to a weekly total of $44.5 million in withdrawals. Notably, Grayscale’s Ethereum Trust (ETHE) accounted for the largest share of these outflows with a withdrawal of $9.8 million.

In contrast to the predominantly unfavorable trends, Bitwise’s Ethereum ETF managed to draw investments. Meanwhile, ETHW experienced a slight increase of around $1.4 million, while VanEck’s ETHV saw significant inflows totaling $2 million. This suggests that certain market sectors have faith in these Ethereum-based investment vehicles.

Institutional Adoption of Bitcoin ETFs Surges

Large investments into Bitcoin ETFs signal a growing trend of institutional involvement. Goldman Sachs, as per its latest 13F filing, has substantial stakes in various Bitcoin ETFs. By the end of June, the bank reported an investment of $238.6 million in iShares Bitcoin Trust, $79.5 million in Fidelity’s Bitcoin ETF, and $35.1 million in Grayscale Bitcoin, among other holdings. This indicates a significant institutional interest in Bitcoin ETFs.

In a similar vein, it was disclosed earlier this month that Morgan Stanley owns approximately 5.5 million shares of BlackRock’s iShares Bitcoin Trust, worth about $190 million. Additionally, they have also invested in the ETFs offered by Ark and 21Shares, as well as Grayscale. This significant increase in institutional investment in these products has been emphasized by Matt Hougan, the Chief Investment Officer at Bitwise.

Just recently on platform X (previously Twitter), Hougan highlighted that Bitcoin ETFs have experienced an unprecedented surge in investments, accumulating a staggering $17.5 billion since their debut. This remarkable milestone surpasses the previous record set by the Nasdaq-100 QQQs.

Hougan’s examination questions the common belief that Bitcoin spot ETFs are mainly influenced by individual investors. Instead, he points out that institutional interest is not only evident but also rapidly increasing at an unmatched pace. Furthermore, his findings show that Bitcoin ETFs have drawn in three times as many institutional investors within the initial two quarters compared to the QQQs during a similar timeframe.

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2024-08-24 12:04