Matt Hougan, Bitwise’s chief investment officer (CIO), highlighted in his X post the traction gained by Bitcoin exchange-traded funds (ETFs) from investment advisers. Responding to an analyst post, Hougan on Monday stated that investment advisors adopt Bitcoin ETFs much faster than any other exchanges’ ETFs.
The truth is that investment advisors are adopting bitcoin ETFs faster than any other ETF in history. It is just that their historic flows are overshadowed by the even more historic purchases of other investors.
Shifting Focus
Analyst Jim Bianco pointed out in his X post that the adoption of investment (wealth) advisors is small for Bitcoin ETFs. He added that the BTC ETFs holdings account for about 9% of outstanding shares. Additionally, he pointed out that the hedge funds add another 12%. Further, Bianco argued that many had switched sides to ETF from on-chain physical Bitcoin. Although he is hopeful that the ETFs would attract the baby boomer generation, Bianco is skeptical that the flow of new investors is small.
7/8
— Jim Bianco (@biancoresearch) September 8, 2024
What about the adoption of investment (wealth) advisors?
Small
BTC ETF holdings account for 9% of shares outstanding. Hedge funds add another ~12% (mostly basis trades, not directional bets).
About 85% is NOT from tradfi institutions.
Note that all are holding losses. pic.twitter.com/2MMbmezxUH
Small is Not ‘Small’
Reacting to the analyst’s data, Hougan pointed out that IBIT, the BlackRock ETF, gained over $1.45 billion in net flows. However, the analyst considers this amount ‘small’ as it is only a fraction of the total $45 billion net flows. Hougan added that if the focus were only on the $1.45 billion linked to the investment advisors, the BlackRock ETF would be the second fastest-growing ETF launched this year.
Wall Street Titans Fuel Bitcoin ETF Boom Despite SkepticismLimited number, Significant Inflow
Further, the CIO draws attention to KLMT, an ESG ETF, claiming that it is the only ETF that can beat on assets. The KLMT was seeded by a single investor with $2 billion and trades about 250 shares on average, with zero investment advisor adoption. He further stated that although there is a limited number of investment advisors for Bitcoin, their purchases are large, implying that significant inflows can be witnessed even with a limited number.
