Bitcoin exchange-traded funds (ETFs) are seeing a surge in adoption by investment advisors, according to Bitwise CIO Matt Hougan.
Hougan is refuting claims by macro strategist Jim Bianco that advisor adoption of Bitcoin ETFs is “small.” Hougan points to data on the BlackRock ETF, IBIT, which has attracted $1.45 billion in net flows from investment advisors. While this might seem small compared to the $46 billion total inflows into Bitcoin ETFs, Hougan argues that advisor adoption of Bitcoin ETFs is actually faster than any other ETF in history.
“It’s true that investment managers represent a small fraction of buyers of Bitcoin ETFs,” Hougan explains, “but it’s not accurate to say that their purchases are ‘small.'”
Bloomberg ETF analyst Eric Balchunas agrees with Hougan, stating that IBIT’s advisor allocations alone represent more organic inflows than any other ETF launched this year.
This rapid adoption of Bitcoin ETFs by advisors suggests growing confidence in the asset class. As more advisors embrace Bitcoin, it could further drive institutional investment in the cryptocurrency.
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