Bitwise CIO Matt Hougan said institutions will inject more than $1 trillion into Bitcoin through ETFs over the next year, once due diligence is completed and further exposure is approved.
Hougan shared his perspective in the latter weekly investor note of the company, where he reflected on the challenges and opportunities facing investors in the digital currency space.
The Bitwise CIO urged investment professionals to maintain a long-term perspective amid the current volatile state of the crypto markets, especially Bitcoin, which has seen fluctuating prices between $60,000 and $70,000.
Short-term attitude pattern
Hougan pointed out that the market is in a “short-term pattern” in anticipation of major upcoming events. He added that each of these developments will determine the short-term trajectory of the market in the coming months.
These include the Bitcoin halving expected around April 17, possible approvals of spot Bitcoin ETFs on major national platforms such as Morgan Stanley or Wells Fargo, and the completion of formal due diligence by various investment committees on greenlighting exposure to the flagshipcrypto.
Despite the near-term uncertainties, Hougan remains optimistic about Bitcoin’s long-term prospects. He pointed to the successful launch of spot Bitcoin ETFs, which marked an important moment for the accessibility of the crypto market to investment professionals.
Hougan highlighted the enormous size of the global investment market, with professionals holding more than $100 trillion, and the relatively nascent involvement of these funds in the crypto sector.
Still 99% to go
Hougan drew attention to the historic $12 billion that has flowed into ETFs since their launch, stating that even a modest 1% average allocation of global asset managers to Bitcoin could result in approximately $1 trillion entering the space, eclipsing current investment levels are dwarfed.
The comparison highlights the early stages of crypto adoption by the investment community and its enormous growth potential. Hougan summed up the sentiment with the sentence:
“1% down, 99% to go.”
Hougan’s memo also served as a warning, reminding investors of the inherent risks and volatility associated with crypto trading. He emphasized the need for individual investors to conduct thorough due diligence and consider their own investment suitability before entering the market.
The note concluded with an invitation to explore further crypto analysis on the Bitwise Insights page, encouraging a deep dive into the complexities and opportunities within the crypto market.
As the digital asset landscape continues to evolve, Hougan’s insights provide a compelling argument for both caution and optimism in the face of volatility and change.