Bitcoin To Receive Monumental $150 Billion Inflow: Expert Reveals
16 Februar 2024 - 10:00AM
NEWSBTC
At the Exchange ETF conference in Miami Beach, Matt Hougan, Chief
Investment Officer at Bitwise Asset Management, and Ric Edelman,
founder of the Digital Assets Council of Financial Professionals,
engaged in a discussion with CNBC’s Bob Pisani on the future of
spot Bitcoin ETFs and their integration within diversified
portfolios. $150 Billion Ready To Enter The Bitcoin Rabbit Hole Ric
Edelman cast a bold prediction about the future inflows into spot
Bitcoin ETFs, foreseeing an unprecedented $150 billion by the end
of 2025, up from the current $5 billion. He confidently stated,
“I’m anticipating that by the time we get to the end of 2025, we’re
talking two years, we’re gonna see total inflows of more than $150
billion. We’re only at $5 billion right now.” This represents a
significant leap, signaling a transformative phase in
cryptocurrency investment. The conversation then turned to the
underlying factors expected to drive this surge. Edelman elaborated
on the potential inflows from independent financial advisors, who
currently manage about $8 trillion in assets. With three-quarters
indicating a readiness to allocate to Bitcoin ETFs, according to
recent industry studies, Edelman explained the math: “Do the
arithmetic. $8 trillion, 77% and 2.5% is $150 billion worth of
flows.” Related Reading: Bitcoin All-Time High Ahead: Historical
Pattern Signals 50% Chance Of Reaching $100K By August Notably,
this calculation only takes into account independent advisors,
leaving out the substantial potential from wirehouses, regional
broker-dealers, and institutional investors, as Edelman
emphasized. On a bullish note, Matt Hougan highlighted
the enduring nature of investments in Bitcoin ETFs by financial
advisors, contrasting with the speculative short-term trading often
associated with cryptocurrencies. “The people who are buying
Bitcoin ETFs now, the financial advisors, they make their
allocations for the long term. Financial advisors are usually not
short-term traders, they’re not speculating where Bitcoin will be
next week. They make an allocation that they hold for 1 year, 3 or
5 years,” Hougan remarked. Independent advisors control $8 trillion
in assets, and surveys show 77% of them want to add Bitcoin to
their portfolios, aiming for an average allocation of 2-3%. This
means we'll likely see $150 billion flowing into Bitcoin ETFs from
advisors alone. H/T @RhinoBTCapp pic.twitter.com/jc0F98KBAL —
Thomas | heyapollo.com (@thomas_fahrer) February 14, 2024 BTC Price
Could Reach $150,000 Delving into who is leading the charge in
Bitcoin ETF investments, Hougan noted, “We are seeing a lot of
flows from RIAs, we are seeing from family offices and we are
seeing some people who rotate off from other products.” This trend
points to a broadening acceptance and recognition of Bitcoin ETFs
within the investment community. Edelman further bolstered his $150
billion inflow projection with the anticipated impact on Bitcoin’s
price, suggesting it could reach $150,000 within two years due to
the fixed supply and increasing demand dynamics. “This number
excludes inflows from wirehouses, regional broker-dealers, and
institutional investors,” he added, highlighting the conservative
nature of his estimate. Related Reading: Bitcoin Price Rally To
$75,000 Imminent Due To Massive Cup And Handle Pattern Hougan
complemented the discussion by shedding light on the broader
implications for the ETF and crypto markets, praising the
regulated, efficient, and investor-friendly nature of Bitcoin ETFs.
He pointed out, “ETFs are tracking prices well, investors have
peace of mind with access to all the data and ETFs are simple and
secure with low fees.” Both experts concurred on the strategic
value of including spot Bitcoin ETFs in investment portfolios for
diversification. Hougan summarized this sentiment, saying, “They
see Bitcoin as a non-correlated asset that when used for
rebalancing and managed professionally will not lead to any
volatility for the portfolio.” Reflecting on the comparative
success of Bitcoin ETFs against traditional gold ETFs, Hougan
highlighted the competitive fee structure and the strong demand
observed for the Bitwise Bitcoin ETF (NYSE:BITB). “With Bitwise
charging 20 basis points, fees are half that of the largest gold
ETF,” he noted, underscoring the financial efficiency and appeal of
Bitcoin ETFs to a wide range of investors. At press time, BTC
traded at $51,808. Featured image created with DALLE, chart from
TradingView.com
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