- Corporations with trillions of dollars under management are planning to buy Bitcoin (BTC) according to Bitwise
- The corporations plan to interact with BTC through ETFs
- Bitwise predicts their entry to happen within the next three months
Crypto-centric asset manager and spot Bitcoin ETF issuer Bitwise has noted that corporations managing trillions of dollars are contemplating boarding the Bitcoin train by June this year. Bitwise disclosed that the deep-pocketed entities include “major warehouses, institutional consultants and large corporations.” The asset manager said that the institutions plan to use the recently approved spot Bitcoin ETFs, an indication that traditional institutions were waiting for a regulated way to invest in cryptocurrencies.
Serious Due Diligence Discussions
Bitwise CIO Matt Hougan revealed in a memo to investors that the asset manager was in discussions with corporations looking to enter the Bitcoin space within the next three months.
Who’s Buying Bitcoin ETFs (As Far As We Know)
An excerpt from Bitwise CIO @Matt_Hougan‘s weekly memo to investment professionals.
Bitcoin ETFs have attracted more than $7.5 billion in net new assets since launching in the U.S. on January 11, making many of them among the most… pic.twitter.com/jyIZHUsbn6
— Bitwise (@BitwiseInvest) March 8, 2024
Hougan noted that “serious due diligence discussions” are also likely being held by “other Bitcoin ETF users,” something that shows a growing institutional Bitcoin appetite. According to the CIO, spot BTC ETFs have “attracted more than $7.5 billion since mid-January this year.”
The CIO also said that the growing appetite for the ETFs aligns with the investment vehicle’s promise of opening up the BTC “market to professional investors.” Hougan observed that trillion-dollar corporations will continue increasing their Bitcoin positions once they take the first step in “Q2 2024.”
BTC Mitigates Rising Debt Effects?
Hougan’s note also disclosed that family offices, hedge funds, asset managers, and venture capital funds are among entities using ETFs to buy BTC. The CIO’s observation aligns with growing calls to invest in Bitcoin and precious metals to mitigate the effects of the rising national debt in the United States.
BITCOIN > BUDGETING
We’re in the looting-the-treasury phase of imperial collapse. The dynamic described below isn’t just happening in San Francisco; it’s also the $100B wasted on Californian high speed rail and the rapidly growing $35T+ national debt at the federal level. And… https://t.co/kI4TmaaI4O
— Balaji (@balajis) March 10, 2024
It also comes when spot Bitcoin ETF issuers are registering an uptick in Bitcoin holding. BlackRock, for example, now holds more Bitcoin than Microstrategy.
[1/4] Bitcoin ETF Flow – 08 March 2024
All data in. $223m positive net flow for thew day
The assets of the ETFs excluding GBTC are now over $28 billion, this is now larger than GBTC’s assets for the first time pic.twitter.com/5BlBTu4WLn
— BitMEX Research (@BitMEXResearch) March 9, 2024
With institutional demand for Bitcoin attributed to the rise of BTC’s price to over $71,000, it’s to be seen whether the demand will sustain the price for long.
