Matt Hougan, Chief Investment Officer at Bitwise Asset Management, refuted an analyst's claim that investment advisors were not buying Bitcoin (CRYPTO: BTC) spot exchange-traded funds in great numbers.
What Happened: In a post on X Monday, Matt Hougan challenged the views of macro analyst Jim Bianco, arguing instead that investment advisors were adopting Bitcoin ETFs faster than any new ETF in history.
Using Bianco's own figures to buttress his point, Hougan stated that the $1.45 billion net inflows from investment advisors into the iShares Bitcoin Trust ETF (NASDAQ:IBIT) that Bianco deemed "small" was in fact the second highest among over 300+ ETFs launched this year.
"The truth is that investment advisors are adopting bitcoin ETFs faster than any other ETF in history. It is just that their historic flows are overshadowed by the even-more-historic purchases of other investors," Hougan asserted.
Jim is wrong here: Investment advisors are adopting bitcoin ETFs faster than any new ETF in history.
Let's look at his own data, focused on IBIT, the BlackRock ETF.
Per his table, IBIT has attracted $1.45 billion in net flows from investment advisors. He calls this "small"...— Matt Hougan (@Matt_Hougan) September 9, 2024
The claim was supported by Bloomberg ETF analyst Eric Balchunas, who added, "Just IBIT's advisor allocations (which add up to $1.5b) is more organic inflows than any other ETF launched this year."
Great point: Just $IBIT's advisor allocations (which add up to $1.5b) is more organic inflows than any other ETF launched this year.
— Eric Balchunas (@EricBalchunas) September 9, 2024
Why It Matters: The rebuttal was in response to Bianco's analysis on the performance of spot Bitcoin ETFs since launch, who emphasized that most inflows into ETFs have come from existing on-chain holders rather than new market participants.
Bianco also pointed out that the investment advisors and wealth managers, who were expected to drive adoption, account for only 9% of shares outstanding.
The ETFs launched in January have attracted net inflows of $16.93 billion since launch, according to data from SoSo Value, although recent price volatility has eroded demand. Last week, the 12 spot ETFs recorded their second-worst performance since inception, with net outflows exceeding $706 million.
BItwise's spot Bitcoin fund, Bitwise Bitcoin ETF (NYSE:BITB), has attracted $1.93 billion in net inflows since launch, and closed 2.01% higher at $31.15 during Monday's trading session.
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