Bitwise’s Chief Investment Officer, Matthew Hougan, predicts that institutional investors will invest up to $1 trillion into Bitcoin through exchange-traded funds (ETFs) as they gradually enter the crypto market. In a memo to investment professionals, Hougan addressed concerns about Bitcoin’s price volatility and advised taking a long-term perspective. Despite the asset’s current price fluctuations between $60,000 and $70,000, Hougan highlighted several upcoming events that could positively impact Bitcoin, such as the Bitcoin halving and the potential approval of spot Bitcoin ETFs on national account platforms like Morgan Stanley or Wells Fargo. Hougan emphasized the importance of waiting for investment committees and consultants to complete their due diligence on Bitcoin before investing. While short-term price fluctuations may occur, Hougan believes that the long-term outlook for Bitcoin is promising. The recent approval of spot Bitcoin ETFs in January has opened up the crypto market to investment professionals, and Hougan expects more professional investors to enter the space over the next few years. He noted that the $12 billion inflow into ETFs since their launch is impressive, but once global wealth managers start allocating 1% of their portfolios to Bitcoin, it could result in $1 trillion pouring into the crypto market. Hougan described the current inflow as a mere down payment compared to the potential future investments.
Bitwise executive predicts a surge of $1 trillion in institutional investment as Bitcoin thrives in a 'raging bull market'