- To date, professional investment firms own approximately $3 billion worth of BTC ETFs.
- Bitwise exec installment $3 billion as ‘down payment’ as allocation will increase in 6 months.
Despite the daunting market turmoil, Bitcoins [BTC] The future seems bright and full of unimaginable potential.
According to Matt Hougan, CIO of Bitwise, flows into BTC ETFs could increase as major companies increase their allocation over the next six months.
Hougan to maintain a very bullish view on the future of BTC after many confirmed professional firms held BTC ETFs following recent 13F filings.
“I find the 13F filings for Bitcoin ETFs extremely optimistic for the long-term future of Bitcoin.”
It has been challenging to know the buyers or sellers of spot BTC ETFs that debuted in January. However, the 13F filings have resolved the problem.
The 13F filings, filed quarterly, are one of the SEC’s requirements for investors holding more than $100 million in AUM (assets under management) to publicly report their holdings.
For example, Boston-based Bracebridge Capital Reportedly bought $262 million worth of Fidelity’s BTC ETF (ARKB) based on the filings.
Why the 13F filings are a bullish case for Bitcoin
Since their debut in January, the spot BTC ETFs have seen cumulative net flows of $11.8 billion and more than $50 billion in net assets, per SoSo Value facts.
Based on recent 13F filings last Thursday, professional investment firms owned $3.5 billion worth of spot BTC ETFs, the Bitwise executive said.
Part of the Bitwise CIO filing statement read,
“All told, 563 professional investment firms reported holding $3.5 billion worth of bitcoin ETFs as of Thursday. By the time the May 15 filing deadline arrives, I suspect we will ultimately have more than 700 professional firms and total assets under management approaching $5 billion.”
Bloomberg ETF Analyst Called the aforementioned Huge Number of Large-Scale BTC Investors’crazy.’
“What is also remarkable IMO is the sheer number of holders each has to date. $IBIT has gone up to 250. That’s crazy for the first quarter on mkt.”
According to Huogan, the large-scale professional investment firms holding BTC ETFs were unlike any other than gold ETFs in late 2004.
However, retail investors owned more BTC ETFs than large-scale companies. Hougan noted that the investment firms owned approximately $3-$5 billion in BTC ETFs, approximately 7-10% of the ETF’s total assets of $50 billion.
But Hougan argued that professional investors could soon eclipse retail investors. Hougan noted that professional investors try things out before exposing their clients.
According to the Bitwise director, the next step will involve professional investors allocating a “few clients” before moving to a platform-wide allocation ranging from “1-5% of the portfolio” over the next six months.
It meant that the amount declared in the 13F returns could increase over the next six months, turning the current returns into a ‘deposit’.
“This tells me that the allocations we’re seeing in recent 13F filings are just a down payment.”
If Hougan’s outline pans out for professional investment firms, we could see an increase in flows from large companies in the second half of 2024. This could potentially boost BTC prices over the same period.