In
a
new

memo,
Matt
Hougan,
Bitwise
Chief
Investment
Officer
Matt
Hougan
offered
a
detailed
analysis
of
the
early
adopters
of
Bitcoin
Exchange-Traded
Funds
(ETFs)
based
on
13F
filings
with
the
SEC.
His
insights
underscore
a
significant
embrace
of
Bitcoin
ETFs
by
professional
investment
firms,
heralding
a
potential
shift
in
the
landscape
of
BTC
investments.

Since
their

launch
on
January
11,
Bitcoin
ETFs
have
captured
an
impressive
$11.7
billion
in
assets,
making
them
the
most
successful
ETF
launch
in
the
annals
of
financial
products.
This
explosive
start
has
sparked
widespread
interest
in
the
identities
of
the
investors—whether
they
are
predominantly
retail
or
professional.

 

Who
Is
Buying
The
Spot
Bitcoin
ETFs?

Hougan’s
memo
provides
a
clear
answer.
“A
lot
of
professional
investors
own
bitcoin
ETFs,”
he
stated.
These
aren’t
just
any
investors;
they
are
some
of
the
most
respected
and
substantial
asset
managers
in
the
industry.
For
instance,
Hightower
Advisors,
ranked
as
the
#2
RIA
firm
in
the
US
by
Barron’s
and
managing
$122
billion
in
assets,
now
holds
$68
million
in
Bitcoin
ETFs.
Similarly,
Bracebridge
Capital,
a
prominent
Boston-based
hedge
fund
that
manages
endowment
funds
for
institutions
like
Yale
and
Princeton,
has
invested
a
hefty
$434
million.

Other
significant
stakeholders
include
Cambridge
Investment
Research
with
$40
million,
Sequoia
Financial
Advisors
at
$12
million,
Integrated
Advisors
holding
$11
million,
and
Brown
Advisory
with
$4
million
in
Bitcoin
ETF
holdings.
Altogether,
as
of
the
latest
data
from
last
Thursday,
563
professional
investment
firms
have
reported
owning
a
combined
$3.5
billion
worth
of
Bitcoin
ETFs.
Hougan
anticipates
that
by
the

May
15
filing
deadline,
these
numbers
could
grow
to
over
700
firms
with
total
assets
under
management
nearing
$5
billion.

“This
is
absolutely
massive,”
Hougan
explained.
“For
any
financial
advisor,
family
office,
or
institution
wondering
if
they
were
the
only
ones
considering
Bitcoin
exposure,
the
answer
is
clear:
You
are
not
alone.”

 

From
a
historical
perspective,
the
scale
of
professional
investor
ownership
has
been
described
as
unprecedented.
Eric
Balchunas,
a
senior
Bloomberg
ETF
analyst,
referred
to
the
number
of
large-scale
investors
involved
in
the
Bitcoin
ETFs
as
“bonkers.”
By
comparison,
when

gold
ETFs
launched
in
late
2004—a
launch
previously
regarded
as
the
most
successful
of
all
time—they
attracted
more
than
$1
billion
in
just
five
days.
However,
their
first
13F
filings
showed
only
95
professional
firms
investing.
In
contrast,
Bitcoin
ETFs
have
dramatically
exceeded
this
mark
right
from
their
initial
filings.

Despite
this
surge
in
professional
interest,
Hougan’s
memo
cautions
that
the
total
$50
billion
assets
under
management
in
Bitcoin
ETFs
still
have
a
substantial
portion
owned
by
retail
investors.
He
estimates
that
professional
investors
currently
account
for
only
7-10%
of
all
assets.
However,
he
suggested
that
media
portrayal
of
these
ETFs
as
“retail-driven”
funds
might
overlook
a
critical
emerging
trend.

“Most
investors
follow
a
familiar
pattern,”
Hougan
stated,
describing
a
typical
four-step
investment
trajectory
observed
among
institutions.
Initially,
there
is
a
period
of
due
diligence
lasting
6-12
months.
Following
this,
professionals
might
make
a
small
personal
allocation
to
test
the
waters
before
recommending
broader
allocations
to
their
clients.
Eventually,
this
leads
to
more
substantial,
platform-wide
allocations
across
their
entire
book
of
clients,
typically
ranging
from
1-5%
of
the
portfolio.

 

Given
these
insights,
Hougan
remains
“incredibly”
bullish
about
the
future
of
Bitcoin
ETFs.
He
concluded,
“The
allocations
we
see
in
recent
13F
filings
are
just
a
down
payment.”
He
highlighted
that
firms
like
Hightower
Advisors,
with
a
current
0.05%
allocation,
could
potentially
increase
their
investments
substantially.
“Multiply
that
by
the
growing
number
of
professional
investors
participating
in
the
space,
and
you
can
begin
to
see
what’s
behind
my
enthusiasm.”

Remarkably,
yesterday,
after
Hougan
released
the
memo,
there
was
probably
the
most
important
13F
disclosure
for
Bitcoin
to
date.
The
State
of
Wisconsin
Investment
Board

reported
buying
$99,167,688
(2,450,400
shares)
of
BlackRock’s
IBIT
and
$63,687,310
(1,013,000
shares)
of
Grayscale’s
GBTC.

At
press
time,
the
BTC
price
stood
at
$61,940.

Featured
image
created
with
DALL·E,
chart
from
TradingView.com

Go to Source
Author: Jake Simmons

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