Bitwise: Bitcoin Acquisition in the Works as Prominent Corporations and Wirehouses Prepare

Institutions with significant assets are making preparations to invest in spot Bitcoin exchange-traded funds (ETFs) by the end of June, according to Bitwise, a crypto-native asset manager. In a memo sent to investors on March 9, Bitwise’s chief investment officer, Matt Hougan, stated that the company was engaged in “serious due diligence” discussions with large corporations, major wirehouses, and institutional consultants who are looking to increase their exposure to Bitcoin in the coming months. Hougan also confirmed that a wide range of individual retail investors, family offices, hedge funds, and venture capital firms are interested in acquiring more allocation into spot Bitcoin ETFs. The institutional demand for these ETFs has been credited with driving up the price of Bitcoin by more than 50% since their launch on January 11. Hougan expects the inflows into the 10 approved spot Bitcoin ETF products to further accelerate in the second half of the year, given the massive categories they represent in terms of assets. This optimistic outlook is not new, as Hougan previously expressed his bullishness for Bitcoin ETFs, predicting a “bigger wave” of institutional capital that would substantially increase Bitcoin’s price. Since their inception, Bitcoin ETFs have attracted net inflows of nearly $9 billion, with BlackRock’s iShares IBIT fund leading the way in new inflows. On March 8, BlackRock’s Bitcoin ETF surpassed MicroStrategy in terms of total Bitcoin held, further highlighting the growing interest of institutional investors in the cryptocurrency.