The latest 13F filing has revealed the investors who are purchasing spot Bitcoin ETFs and the size of their positions. Bitwise Chief Investment Officer Matt Hougan expressed his excitement about the success of the ETFs but highlighted a significant point that the media might overlook, making him even more optimistic about the BTC ETFs. According to Hougan, 563 professional investment firms have reported owning a combined $3.5 billion worth of Bitcoin ETFs, and he expects these numbers to eventually surpass 700 firms with total assets under management approaching $5 billion. Interestingly, the latest data from K33 Research shows that over 900 firms have disclosed their spot Bitcoin ETF holdings. Senior analyst at K33 Research, Ventle Lunde, shared a chart indicating the unique owners of Bitcoin ETFs in Q1. Bloomberg Senior ETF analyst Eric Balchunas noted that the largest ETFs have attracted the most institutional capital, with BlackRock’s IBIT attracting over 400 holders. While Hougan considers this a “huge success,” he points out that professional investors currently own just 7-10% of the total investment despite managing over $50 billion in assets. However, K33 Research data reveals that this share is actually 18%. Hougan believes that the media’s portrayal of spot Bitcoin ETFs as “retail-driven” funds may overlook an important emerging trend that makes him highly optimistic based on the initial 13F filings. He describes a typical four-step investment trajectory observed among institutions, starting with a 6-12 month period of due diligence for investment evaluation. The second step involves professionals making a small personal allocation before exposing their investors to the market. This eventually leads to larger platform-wide allocations across the entire client book, typically ranging from 1-5% of the portfolio, around six months after the initial allocation. Hougan believes that the current allocations seen in the recent 13F filings are just a down payment. To illustrate this, he uses Hightower Advisors as an example, explaining that their current spot Bitcoin ETF allocation represents just 0.05% of their assets. However, following the typical four-step investment process, a 1% allocation would equate to $1.2 billion from a single firm. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.
Bitwise Chief Investment Officer (CIO) declares BTC ETFs a tremendous triumph, expressing his 'incredibly bullish' sentiments through 13F filings.