Matt Hougan, CIO of Bitwise, has shared an optimistic view on the growing interest from institutional investors in Bitcoin (BTC) exchange-traded funds (ETFs). According to Hougan, the number of institutions holding shares in Bitcoin ETFs has reached 1,924, reflecting a 30% increase from the previous quarter despite a dip in Bitcoin prices.
Hougan emphasizes that this growth indicates a continued adoption of Bitcoin ETFs among institutions. He points out that while some investors may hold positions in multiple ETFs, the overall trend is still significant. Notably, many of these institutional investors are showing “diamond hands,” meaning they are not quick to sell their Bitcoin holdings even amidst market fluctuations. For instance, 44% of institutions that reported in Q1 increased their Bitcoin ETF positions in Q2.
The data also reveals that a diverse range of investors, including hedge funds, advisors, family offices, and select institutions, are entering the Bitcoin ETF market. Hougan notes that ETFs serve as a “big tent” for various types of investors, and he is hopeful that wealth managers and pension funds will play an increasingly larger role in the future.
Currently, Bitcoin is trading at approximately $58,579. For crypto traders, this news underscores the sustained institutional interest in Bitcoin ETFs, highlighting that despite market volatility, institutions remain committed to expanding their exposure to Bitcoin through these investment vehicles.
