Bitwise, an asset management firm specializing in crypto-related products, stated in a memo that institutional crypto buyers could swell in the market in the near future.
The spot Bitcoin ETFs in the US will likely receive much more investment shortly. Bitwise, a crypto asset management firm, predicted the event through one of its recent reports. The firm posted a summary of its memo on social media and described the strategy of institutional crypto investors. According to Bitwise, large firms will soon invest in the spot Bitcoin ETFs.
Matt Hougan, the firm’s chief investment officer, authored the memo to investment professionals. He stated that a wide variety of groups and individuals were buying the ETFs. It included family offices, hedge funds, individual retail investors, venture capital funds, and others. Further, he reported they were in touch with large corporations, major wirehouses, and institutional consultants in due diligence issues.
“These are massive categories representing trillions of dollars in assets. Based on current trends, I’d suspect we’ll see our first significant flows from these three groups in Q2 2024, and I think those flows will accelerate throughout the year,” he said, describing the groups.
Since their approval, the spot Bitcoin ETFs have already witnessed over $7 billion in inflows. At the same time, a crypto allocation strategy has become popular for investors. This strategy has resulted in Bitcoin moving through record returns in the crypto market over the last few weeks. The spot Bitcoin ETFs have significantly eased crypto allocation plans for new investors in the market.
Moreover, global crypto regulatory proposals are developing quickly. Europe has already seen a comprehensive law in the MiCA. However, countries like the US are also catching up with recent developments around stablecoin laws and other projects.
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