Matt Hougan, CIO of Bitwise, claims that Bitcoin (BTC) exchange-traded funds (ETFs) are being adopted by investment advisors more rapidly than any other ETFs in history.
This response counters macro strategist Jim Bianco’s assertion that the adoption rate is “small.” Hougan argues that Bianco’s perspective is incorrect, pointing out that the BlackRock Bitcoin ETF (IBIT) alone has seen $1.45 billion in net inflows from investment advisors.
While this is a fraction of the total $46 billion invested in Bitcoin ETFs, Hougan asserts that the rapid adoption by advisors is significant compared to other ETFs.
Hougan further explains that while the total inflow into Bitcoin ETFs includes contributions from a broad range of investors, the speed at which investment advisors are incorporating these ETFs into their portfolios is unprecedented.
He highlights that the historic nature of this adoption reflects a growing confidence among advisors in Bitcoin’s long-term potential.
Bloomberg ETF analyst Eric Balchunas supports Hougan’s view, noting that IBIT’s advisor allocations, totaling $1.5 billion, represent a substantial organic inflow compared to other ETFs launched this year.
Balchunas emphasizes that this level of advisor commitment underscores the significant interest in Bitcoin ETFs, despite their comparatively small proportion of the overall market.
Cryptocurrency investors are closely watching the Federal Reserve’s interest rate decision set for tomorrow.
Bitcoin and the crypto market as a whole experienced a swift recovery this past day, with most prices being in the green.
BlackRock’s IBIT Bitcoin ETF recorded its first daily net inflow in three weeks, bringing in $15.8 million.
Grayscale Investments’ Bitcoin Trust (GBTC) is still experiencing investor withdrawals, with an additional $20.8 million pulled out on Monday, as reported by Farside Investors.