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Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U. Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
During his appearance at a CNBC’s Squawk Box show today the CIO at Bitwise Matt Hougan shed some light on what he thinks of the current Bitcoin boom caused by the spot BTC exchange-traded funds. Besides, he clarified who the main customers of these ETFs are. Bitwise Investments is a major crypto index fund and ETF provider, one of the companies that launched spot Bitcoin ETFs in January.
In the meantime, the global leading digital currency, Bitcoin, continues to trade above the $63,000 level, beating the April 2021 peak. Since the beginning of 2024 (in just two months), BTC has already increased in price by approximately 50% and, as many experts believe, it seems to be nearing a new all-time high.
Answering a question from a Squawk Box co-host Andrew Sorkin about what sort of investors are buying into spot Bitcoin ETFs, Hougan shared that these are all categories of investors. Therefore, those are financial institutions, retail investors and hedge funds.
Hougan believes that in a few months the market is likely to see an even bigger wave of investors coming: major wire houses are beginning to turn on into ETFs.
The CIO has referred to the recent Bitcoin price massive increase as a “Bitcoin IPO moment” and “a new era of Bitcoin price discovery.” An IPO (an initial public offering) here, most likely, refers to the fact that spot Bitcoin ETFs allow investors to buy ETF shares backed by Bitcoin.
Matt Hougan expects that from the current level the Bitcoin price can go “substantially higher.”
As for the question who in what proportion these ETF shares are being bought by financial institutions, retail holders, Hougan stated that primarily the first group to always start buying ETFs is retail investors and hedge funds. Independent financial advisors join them later, and he says.
To provide a proof that the investment flow is bound to be much bigger, Hougan stated that after talking to CNBC, he will be off on a plane flight to discuss these ETFs with one of the largest institutional advising company in the US, without revealing the name.