Bitwise CIO Predicts Long-Term Inflows into Bitcoin ETFs

The chief investment officer of crypto fund manager Bitwise anticipates continued inflows into spot Bitcoin (BTC) exchange-traded funds (ETFs) for years to come.

Bitwise CIO Matt Hougan shares on social media platform X that there remains a sizable pool of clients yet to invest in BTC ETFs, likely to do so in the future.

Hougan emphasizes that ETF flows will persist over time, highlighting a significant variance in the adoption pace of Bitcoin ETFs among financial advisors and national account platforms.

He believes Bitcoin ETFs will experience faster adoption compared to gold ETFs, with inflows expected to build over several years, albeit potentially shorter than the gold ETF ramp.

Additionally, Hougan predicts that Bitcoin ETFs will boost confidence in the digital asset, prompting investors to increase their portfolio stakes in Bitcoin.

He notes a shift from a 1% to a 3% or higher allocation, attributing it to ETF launches mitigating downside risk associated with Bitcoin.

Day 19 of 20 on the road. It has been an amazing trip.

A few additional take-aways to share:

1) ETF Flows Will Continue for Years: A good question to ask about the new bitcoin ETFs is whether the incredible inflows we’ve seen in the first two months represent a one-time surge…

— Matt Hougan (@Matt_Hougan) March 26, 2024

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.