Bitwise CIO Matt Hougan noted a surge in institutional investments in Bitcoin exchange-traded funds (ETFs) during Q2, despite a 12% decline in BTC value.
Hougan emphasized this trend in his latest note to investors, stating, “Bitcoin’s price fell 12% in Q2 2024, but that did not deter institutional interest.”
Historic Adoption Rate
Hougan highlighted the rapid institutional adoption of Bitcoin ETFs, with a 14% increase in institutional investors holding Bitcoin ETFs quarter-over-quarter. Institutional AUM in Bitcoin ETFs reached $11 billion by the end of Q2.
Hougan compared the growth of Bitcoin ETF adoption to the early days of Invesco’s QQQ ETF, indicating significant interest from institutional investors. He noted that Bitcoin ETFs are gaining traction at a faster rate than any other ETF in history.
Portfolio Expansion
Hougan predicted a steady increase in institutional exposure to Bitcoin, with the median investor potentially allocating over 1% to the digital asset within a year.
“Year 1 can be a challenge, but momentum tends to build into Years 2, 3, 4, and 5. I expect the same thing to happen here.”