Bitwise Asset Management’s Chief Investment Officer Matt Hougan shared his views on the increasing interest and acceptance of spot Bitcoin Exchange-Traded Funds (ETFs) during an appearance on CNBC’s ‘Halftime Report’ program. The CEO emphasized the inflow to these funds, particularly in response to the question of what a Bitcoin ETF is. His views came at a time when Bitcoin had reached an all-time high of approximately $72,800, defying expectations.
Growing Investor Interest in Bitcoin ETFs
CNBC reporter Bob Pisani highlighted that following the launch of 10 new spot Bitcoin ETFs, including Bitwise’s own BITB, which brought in $1.3 billion, the market experienced an unprecedented influx of about $20 billion. This movement has attracted a wide range of investors to Bitcoin, significantly expanding the investor base from individual investors to registered investment advisors, hedge funds, and venture capital funds.
According to Hougan, there is a growing and diverse demand to turn to BTC through these ETFs. Hougan also noted that “the initial buyers were individual investors and registered investment advisors, but hedge funds, venture capital funds, and others are also showing interest.”
Hougan pointed to the potential for significant expansion in the investor base for Bitcoin ETFs in the near future. He anticipates that major asset management platforms like Morgan Stanley and Wells Fargo will open up to these ETFs, which he predicts will be a significant turning point in cryptocurrency investment, saying:
“We think that soon platforms like Morgan Stanley and Wells Fargo will enter these ETFs, and we even observe companies lining up to join these funds. These developments mean that many doors are opening, though not all. However, in the coming weeks or months, or even shortly, we expect to start seeing these major brokerage firms allow investments in Bitcoin ETFs. This means that advisors may find it beneficial to add a small amount of Bitcoin to their clients’ overall portfolios.”
Striking Comments Focused on 2024 Bitcoin Price
While explaining what a spot Bitcoin ETF is, Hougan stated that ETF buyers are long-term investors, which signifies a significant transformation in the perception and accessibility of Bitcoin as an investment tool.
The expanding investor base, initially dominated by individual and institutional investors, is now broadening to include major asset management platforms and their clients. According to Hougan, this transformation could increase the capital flow to Bitcoin ETFs, thereby strengthening the integration of BTC into mainstream investment portfolios.
Addressing concerns about Bitcoin’s well-known volatility, Hougan argues that Bitcoin is currently in a price discovery phase. Emphasizing the maturity of investors in this space, he comments:
“If you exclude GBTC, investors turned to BTC when the price dropped from $50,000 to $39,000. They continued to turn to BTC up to the $72,800 level. This consistent investment behavior, despite volatility, reflects a strong belief in the long-term value of Bitcoin. They are consistently investing in Bitcoin, and this gives me confidence in their permanence. I believe most of the investors are long-term players in this space.”
