- So far, professional investment firms own about $3 billion of BTC ETFs.
- Bitwise exec term $3B as a ‘down payment’ as allocation will increase in 6 months.
Despite the discouraging market choppiness, Bitcoin’s [BTC] future seems bright and full of unimaginable potential.
According to Bitwise CIO Matt Hougan, flows to BTC ETFs could surge as large firms increase their allocation in the next six months.
Hougan maintained an uber-bullish stance on BTC’s future after many confirmed professional firms held BTC ETFs after recent 13F filings.
“I find the 13F filings for Bitcoin ETFs extraordinarily bullish for the long-term future of Bitcoin.”
It has been challenging to know the buyers or sellers of spot BTC ETFs that debuted in January. However, the 13F filings have solved the problem.
The 13F filings, filed every quarter, are one of the SEC’s requirements for investors holding more than $100 million in AUM (assets under management) to report their holdings publicly.
For instance, the Boston-based Bracebridge Capital reportedly bought $262 million of Fidelity’s BTC ETF (ARKB) based on the filings.
Why the 13F filings are a bullish case for Bitcoin
Since their January debut, the spot BTC ETFs have seen $11.8 billion in cumulative net flow and over $50 billion in net assets, per SoSo Value data.
Based on recent 13F filings as of last Thursday, professional investment firms owned $3.5 billion of spot BTC ETFs, per Bitwise exec.
Part of Bitwise CIO statement on the filing read,
“All told, 563 professional investment firms reported owning $3.5 billion worth of bitcoin ETFs as of last Thursday. By the time the May 15 filing deadline arrives, I suspect we may end up with 700+ professional firms and total AUM approaching $5 billion.”
Bloomberg ETF analyst called the above huge number of BTC large-scale investors ‘bonkers.’
“What is also notable IMO is the sheer number of holders that each has so far.. $IBIT is up to 250. That’s bonkers for the first quarter on mkt.”
According to Huogan, the large-scale professional investment firms holding BTC ETFs were comparable to none, except the gold ETFs in late 2004.
However, retail investors owned more BTC ETFs than large-scale firms. Hougan noted that the investment firms owned about $3-$5 billion of BTC ETFs, about 7-10% of the ETF’s $50 billion in total assets.
But Hougan argued that professional investors could soon eclipse retail investors. Hougan noted that professional investors are testing out things before exposing their clients.
According to the Bitwise exec, the next step will involve professional investors allocating for a ‘few clients’ before going to a platform-wide allocation ranging from ‘1-5% of the portfolio’ in the next six months.
It meant the amount declared in the 13F filings could increase in the next six months, making the current declarations a ‘down payment.’
‘This tells me that the allocations we see in recent 13F filings are just a down payment.’
If Hougan’s outline comes true for professional investment firms, we could see an increase in flows from large firms in the second half of 2024. This could potentially bolster BTC prices over the same period.