Summary
TLDR: Bitwise CIO predicts high demand for Bitcoin spot ETFs to continue for years, with significant inflows seen in the first two months. Professional investors are still unable to buy Bitcoin ETFs, but this is expected to change in the next two years. Demand from accumulation addresses and other large investors has increased, leading to a preference for higher Bitcoin portfolio shares. Institutional investors remain underinvested in Bitcoin, with potential for increased allocation in the future.
Key Points
1. The demand for Bitcoin spot ETFs is expected to continue for many years, according to Bitwise CIO Matt Hougan.
2. There is a significant disparity in the adoption pace of Bitcoin ETFs, with some investors embracing them early while others are waiting until next year.
3. Institutional investors are increasing their Bitcoin portfolio share, with many now preferring a 3% or higher allocation, thanks to the de-risking effect of ETFs.