Bitwise Chief Information Officer (CIO) Matt Hougan asserted that investment advisors are embracing spot Bitcoin (BTC) exchange-traded funds (ETFs) at a rapid pace compared to other recently launched ETFs.
Hougan responded to a social media post by researcher Jim Bianco, who claimed that less than 10% of US-traded spot Bitcoin ETFs assets under management (AUM) come from investment advisors, suggesting that these ETFs are more like “tourist tools” rather than adoption vehicles.
Nearly $1.5 billion from advisors
Hougan analyzed BlackRock’s iShares Bitcoin Trust (IBIT) net flows related to investment advisors, which amount to $1.45 billion. While this is a small portion compared to the total inflows of $46 billion from spot Bitcoin ETFs, Hougan explained that when focusing solely on the $1.45 billion flow linked to investment advisors, IBIT emerges as the second fastest-growing ETF launched in 2024 out of over 300 funds.
He went on to mention that investment advisors are integrating Bitcoin ETFs into their portfolios at a faster rate than any other ETF in history, despite the relatively lower amount invested compared to other types of investors.
Not too staggering
Bianco’s post on X was triggered by significant outflows from US-traded spot Bitcoin ETFs recorded the previous week. According to Farside Investors data, the ETFs collectively lost $706 million last week, with a significant portion leaving on Sept. 3.
Balchunas pointed out that these major outflows represent only 0.5% of the total AUM of Bitcoin ETFs, which he considers not to be “too staggering.” He highlighted the importance of tracking ETF flows accurately, especially considering fluctuations in asset prices.
He also mentioned that over 1,000 institutional holders have adopted Bitcoin ETFs after two 13F periods, a trend he described as “beyond unprecedented.” Balchunas expects the percentage of institutional and large advisor ownership in IBIT to increase from 20% to 40% within the next year.
