Bitwise: Trillion-Dollar Corporations Planning to Buy Bitcoin

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  • 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. 

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. 

It also comes when spot Bitcoin ETF issuers are registering an uptick in Bitcoin holding. BlackRock, for example, now holds more Bitcoin than Microstrategy.

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.