<\/p>\n
Matt Hougan calls the $12 billion already allocated through ETFs \u201cbarely a down payment.\u201d<\/p>\n
Institutions are getting ready to flood the crypto markets with capital, according to Matt Hougan, CIO of Bitwise, one of the firms that offers a spot Bitcoin ETF.<\/p>\n
\u201cThe January launch of spot bitcoin ETFs opened up the crypto market to investment professionals in a major way for the first time ever,\u201d wrote Hougan, pointing out that these investors control tens of trillions of dollars.<\/p>\n
For Hougan, who explained that a 1% allocation could translate to $1 trillion entering the crypto market, the funds geared to enter the market will take years, not months, calling for investors to \u201cthink about the implications.\u201d<\/p>\n
Bitcoin trades today for $69,706, kicking off the month with a 1.2% drop<\/a>. The asset has experienced significant volatility after hitting its recent all-time high, dropping to a low of $61,494 on March 20 but recovering to its highest monthly close ever on March 31..<\/p>\n <\/p>\n Spot Bitcoin ETFs have been on an accumulation spree since launching on January 11. Collectively, the nine funds now hold more than 831,000 BTC \u2013 a whopping 4.23% of the network\u2019s total supply, according to a Dune dashboard<\/a>.<\/p>\n Bitwise controls 30,734 BTC on behalf of its customers, worth more than $2.1 billion.<\/p>\n But bulls like Hougan think this is just the tip of the iceberg.<\/p>\n And $1 trillion entering an asset with a $1.3 trillion market cap certainly has bullish implications.<\/p>\n \u201cWe are all excited about the $12 billion that has flowed into ETFs since January, but imagine global wealth managers allocate just 1% of their portfolios to Bitcoin,\u201d wrote<\/a> Hougan, calling the move \u201cnot crazy.\u201d<\/p>\n Hougan, who spoke on January 14 to The Defiant to discuss<\/a> the spot Bitcoin ETF market, referenced the Bitcoin halving<\/a>, earmarked for mid-April, as an important catalyst for large investors to start buying, along with news that banking behemoths Morgan Stanley and Wells Fargo should start offering their own Bitcoin ETFs in the coming weeks.<\/p>\n <\/p>\n