Bitwise CIO predicts that institutions will inject over one trillion dollars into Bitcoin through ETFs

According to Cryptoslate, Bitwise Chief Investment Officer Matt Hougan stated in the company's latest weekly investor report that with due diligence completed and further investments approved, institutions are expected to inject over $1 trillion into Bitcoin through ETFs in the next year. Hougan urged investment professionals to maintain a long-term perspective amidst the current volatility of the cryptocurrency market, especially Bitcoin.

Hougan noted that due to anticipated major events, the market is in a "short-term holding mode". He added that each development will shape the short-term trajectory of the market for months ahead. These include an expected halving of Bitcoin around April 17th, platforms like Morgan Stanley or Wells Fargo possibly approving spot Bitcoin ETFs, and various investment committees completing formal due diligence on investing in Bitcoin. Despite short-term uncertainties, Hougan remains optimistic about Bitcoin's long-term prospects. He pointed out that successful launch of spot bitcoin ETFs marks an important moment for investment professionals entering cryptocurrency markets. Hougan emphasized on massive global investment markets controlled by professionals exceeding $100 trillion and their relatively new involvement with cryptocurrencies.

Hougan pointed out since launching ETFs there has been historic inflow of $120 billion funds; he assumes even if global wealth management institutions allocate average 1% assets to bitcoin it would result in approximately $1 trillion flowing into this field which far exceeds current level of investments. This comparison highlights early stages adoption by investors towards cryptocurrencies and its huge growth potential. The sentiment was summarized by Hougan as "one percent down water; ninety-nine percent yet to enter".

Hougan’s report also served as a warning reminding investors inherent risks and volatility associated with trading cryptocurrencies . He stressed individual investors need thorough due diligence before entering market considering suitability for their own investments.