Bitwise CIO: Institutional Investors to Allocate 1%-5% of Portfolios to Bitcoin Spot ETFs

Bitwise CIO: Institutional Investors to Allocate 1%-5% of Portfolios to Bitcoin Spot ETFs

Matt Hougan, Chief Investment Officer (CIO) at crypto asset manager and Bitcoin spot ETF issuer Bitwise, recently stated that institutional investors are expected to allocate a significant portion of their portfolios to Bitcoin spot ETFs in the near future. According to Hougan, institutional investors' initial disclosures in their 13F filings with the U.S. Securities and Exchange Commission (SEC) during Q1 were merely the "tip of the iceberg." He anticipates that within six months of the initial allocation, a growing number of institutions will allocate between 1% and 5% of their portfolios to Bitcoin spot ETFs. Hougan explained that professional allocators typically evaluate crypto through a series of phases, including due diligence, personal allocation, isolated client allocation, and platform-wide allocation. The process usually takes six to twelve months, and it takes approximately six months after the initial allocation for full client launch. The introduction of Bitcoin ETFs provides professional investors with a convenient and efficient avenue to invest in Bitcoin at scale, which significantly expands the pool of capital available for the asset. As of last Thursday, 563 professional investment firms were holding a combined $3.5 billion worth of Bitcoin spot ETFs. Hougan expects this number to increase to over 700 investment firms holding more than $5 billion worth of Bitcoin spot ETFs once the 13Fs are due on the 15th. Previously on 15 May 2024, Hougan had stated that institutional investors' Q1 disclosures were just the beginning and that a substantial increase in Bitcoin spot ETF allocations was anticipated within six months. ```