By Michael Scott
Bitwise chief investment executive Matt Hougan hails the 13F filings with the US Securities and Exchange Commission (SEC) proving that the spot Bitcoin exchange-traded funds (ETFs) realized huge success.
The 13F filing illustrated the banks, hedge funds, and investment firms that acquired the spot Bitcoin ETFs since their approval by the SEC in January. Hougan hails the filings as indicative of the position size and illustrates he says there is a significant point that the media might miss that makes him even more bullish on the BTC ETFs.
Bitcoin ETFs Attracts 900 Professional Investment Firms
Hougan observed that 563 professional investment firms revealed owning Bitcoin ETFs valued at $3.5 billion. Bitwise investment executive predicts the numbers could ultimately eventually hit 700 firms with a combined value nearing $5 billion.
Hougan’s prediction proved right with the present data by K33 Research indicating over 900 firms holding spot Bitcoin ETFs. A Thursday, May 16 post by K33 Research’s lead analyst Ventle Lunde revealed that 937 professional firms filed 13F and confirmed they invested in the spot Bitcoin ETFS as of March 31.
K33 Research offered a direct comparison with only 95 professional firms investing in gold ETFs during the first quarter.
Bloomberg lead ETF analyst Eric Balchunas hailed spot Bitcoin ETFs as a success in attracting huge institutional capital. The analyst observed that BlackRock’s IBIT attracted huge institutional capital from over 400 firms.
Hougan termed the 13F filings as illustrative of huge success as an absolute massive. The investment executive indicated that financial advisors, institutions, and family offices are not alone in pursuing Bitcoin exposure.
The Bitwise executive illustrated that with over $50B in assets under management (AUM) professional investors are holding 7-10% of the entire investment. K33 Research estimated the ownership as slightly higher at 18% of the total investment.
Lunde explained in the Thursday post that while retail holds a majority of the BTC ETF float, professional investors own 18.7% translating to $11.06 billion in exposure.
Hougan decried that the media is portraying the spot Bitcoin ETFs as retail-driven funds musk the emerging trend. The diversity of firms holding the Bitcoin ETFs supports an incredibly bullish prediction from quarter 1 13F filings.
Bitwise CIO Predicts Bullish Future for Spot Bitcoin ETF
The Bitwise chief investment executive outlined a four-step investment trajectory visible among the institutions that start with due diligence that could last a year of investment evaluation.
The second step features professionals with small allocation before the investors’ exposure to the market. The allocation translates to substantial platform-wide allocations featuring the entire client book to account for 1-5% of the portfolio in half a year post the initial allocation.
Hougan concluded that the allocations evident in the 13F filings with the SEC reveal a down payment trend.
The executive utilized Hightower Advisors to illustrate that its present spot Bitcoin ETF holding amounts to 0.05% of the assets. Hougan predicts that were the firm to embrace the four-step investment process to raise its allocation to 1% would translate to $1.2B from a single entity.
Hougan considers that broadcasting the allocation to the growing list of professional investors that participate in the spot Bitcoin ETF space, supports a pathway for an incredibly bullish future.