- Amidst Bitcoin's recent price swings, Bitwise's Matthew Hougan counsels investment professionals to adopt a calm, long-term outlook.
- Hougan forecasts a $1 trillion influx into the cryptocurrency market if global wealth managers allocate a mere 1% of their portfolios to Bitcoin.
In the last couple of months, Bitcoin has witnessed its fair share of fluctuations, oscillating between $60,000 and $70,000. Considering Bitcoin’s volatility, Bitwise chief investment officer Matt Hougan in his memo advises investment professionals to maintain a calm and long-term perspective.
He also mentioned that the media “gets breathlessly worried about every pullback and outrageously excited about every run-up.”
“Bitcoin is in a short-term holding pattern. We are waiting for the bitcoin halving, which will arrive around April 20; waiting for bitcoin ETFs to be approved on national account platforms like Morgan Stanley or Wells Fargo, which could occur within the coming weeks; and waiting for various investment committees and consultants to schedule meetings, convene experts, and complete their formal due diligence efforts on bitcoin,” stated Hougan.
Furthermore, Hougan said that the launch of spot bitcoin ETFs in January marked a pivotal moment, opening the gates of the crypto market to investment professionals.
According to the executive, it's the start of an era where traditional financial institutions begin to seriously engage with cryptocurrency. And the majority of these investors handle a vast amount of global wealth.
“These investors control tens of trillions of dollars—globally, the best estimate is over $100 trillion—and they are just starting to move into crypto. This is a process that will take years, not months,” added Hougan.
The Bitwise CIO said that the achievement of ETFs garnering $12 billion since their inception, is triumphant. However, he’s looking forward to when global wealth managers would dedicate just 1% of their portfolios to Bitcoin. That could lead to an influx of $1 trillion into the cryptocurrency market.
Edited by Harshajit Sarmah
