Matthew Hougan, Bitwise’s chief investment officer, predicts that institutional investors could inject up to $1 trillion into Bitcoin through exchange-traded funds (ETFs) as they gradually enter the crypto space.
In a memo to investment professionals, Hougan acknowledged concerns about Bitcoin’s price volatility, particularly as it fluctuates between $60,000 and $70,000. However, he advised taking a long-term perspective and remaining calm amid short-term market fluctuations.
Hougan highlighted several upcoming events that could impact Bitcoin’s trajectory, including the Bitcoin halving and the potential approval of spot Bitcoin ETFs on national account platforms like Morgan Stanley or Wells Fargo.
The memo emphasized that investment committees and consultants are still conducting formal due diligence on Bitcoin before investing in the asset. This process is crucial and precedes significant institutional investment in the crypto space.
Despite short-term volatility, Hougan expressed confidence in Bitcoin’s long-term prospects, describing it as being in a “raging bull market” with strong growth potential.
Hougan pointed out that the approval of spot Bitcoin ETFs in January opened up crypto investment opportunities for investment professionals. He anticipates that as more institutional investors enter the space, potentially allocating 1% of their portfolios to Bitcoin, it could result in approximately $1 trillion inflow into the crypto market.
Hougan’s memo outlines a bullish outlook for Bitcoin, emphasizing the significant potential for institutional investment through ETFs. While short-term volatility may persist, the long-term trajectory of Bitcoin remains promising, driven by increasing institutional adoption and investment.
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