Key Points
- Professional investment firms currently own about $3 billion of Bitcoin ETFs.
- Bitwise CIO Matt Hougan predicts this allocation will increase over the next six months.
Bitwise CIO Matt Hougan has predicted a surge in flows to Bitcoin (BTC) ETFs as large firms increase their allocation over the next six months.
Despite market volatility, Hougan remains optimistic about Bitcoin’s future, particularly after recent 13F filings confirmed that many professional firms hold Bitcoin ETFs.
13F Filings Reveal Bitcoin ETF Ownership
The 13F filings, which are required by the SEC for investors with more than $100 million in assets under management (AUM), have provided insight into the ownership of Bitcoin ETFs.
For example, Boston-based Bracebridge Capital reportedly bought $262 million of Fidelity’s Bitcoin ETF (ARKB) based on the filings.
Since their debut in January, Bitcoin ETFs have seen $11.8 billion in cumulative net flow and over $50 billion in net assets.
According to recent 13F filings, professional investment firms owned $3.5 billion of Bitcoin ETFs.
Increasing Allocation Predicted
Hougan believes that the number of professional investment firms holding Bitcoin ETFs will increase over the next six months.
He suggests that these firms are currently testing the waters before exposing their clients to Bitcoin.
The next step, according to Hougan, will be for these firms to allocate Bitcoin for a few clients, before moving to a platform-wide allocation of 1-5% of the portfolio.
This could potentially increase the amount declared in future 13F filings.
If Hougan’s prediction proves accurate, this could lead to an increase in flows from large firms in the second half of 2024, potentially bolstering Bitcoin prices over the same period.
