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Bitcoin ETFs experience a 14% increase in institutional interest in Q2, defying market downturns

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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.

Bitcoin ETFs
Bitcoin ETF Institutional Holdings (Source: Bitwise)

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.”

Mentioned in this article

The Rise of Bitcoin Institutional Investments

Unprecedented Institutional Adoption of Bitcoin ETFs

Predictions for Increased Institutional Exposure to Bitcoin

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