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Bitwise CIO Matt Hogan said institutions will inject more than $1 trillion into Bitcoin through ETFs over the next year once due diligence is completed and further exposure is approved.
Hogan shared his views in a recent article Weekly investor notes From the company, he reflected on the challenges and opportunities facing investors in the digital currency space.
Bitwise CIO urged investment professionals to keep a long-term perspective amid the current volatility in the crypto market, especially Bitcoin, where the price fluctuates between $60,000 and $70,000.
Short term holding pattern
Hogan noted that the market is in a “short-term holding pattern” in anticipation of important upcoming events. He added that each of these developments will shape the short-term trajectory of the market in the coming months.
These include the anticipated Bitcoin halving around April 17th, the potential approval of spot Bitcoin ETFs on major domestic platforms such as Morgan Stanley and Wells Fargo, and concerns over exposure to leading cryptocurrencies. This includes the completion of formal due diligence by various investment committees regarding the green light.
Despite the short-term uncertainty, Hogan remains bullish about Bitcoin’s long-term prospects. He pointed to the successful launch of the Spot Bitcoin ETF, which marked an important moment for investment professionals to access the crypto market.
Hogan highlighted the enormity of the global investment market, with more than $100 trillion under management by professionals, and the relatively early stage of these funds’ involvement in the crypto sector.
99% left
Noting the historic $12 billion that has flowed into ETFs since their launch, Hogan said that even with a modest 1% average allocation to Bitcoin from global asset managers, approximately $1 trillion has flown into ETFs. It was assumed that there is a possibility of entering the market, which would dwarf the current level of investment.
This comparison highlights the early stages of cryptocurrency adoption by the investment community and the significant growth potential. Hogan summed up this sentiment with this phrase:
“1% down, 99% left.”
Hogan’s memo also served as a warning note reminding investors of the inherent risks and volatility associated with crypto trading. He emphasized the need for retail investors to conduct thorough due diligence and consider their suitability for investment before entering the market.
The note concludes with an invitation to explore further cryptocurrency analysis on our Bitwise Insights page, encouraging you to dig deeper into the complexities and opportunities within the cryptocurrency market.
As the digital asset landscape continues to evolve, Hogan’s insights provide a compelling argument for both caution and optimism in the face of volatility and change.
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