Bitwise, positioned as the fourth-largest provider of spot Bitcoin ETFs in the United States, boasts assets under management reaching $1.778 billion. Their recent release unveils a series of bold forecasts for the Bitcoin realm, spanning up to the 2028 halving. These predictions aren’t just based on historical data and trends but also underscore the growing entrenchment of BTC within wider financial frameworks.
Matt Hougan, the Chief Investment Officer at Bitwise, foresees a 50% decrease in BTC’s volatility by the next halving in 2028. This forecast stems from the discernible pattern of declining volatility over time, a trend expected to intensify owing to shifts in the market’s participant makeup.
The arrival of institutional investors via Bitcoin ETFs has started to steady price volatility. While individual investors tend to react quickly to market changes and news, institutions tend to use strategies focused on methodical, scheduled entries and exits.
However, Hougan pointed out that ETFs have paved the way for a more structured method of investing in Bitcoin, which they anticipate will notably reduce the past volatility linked with this asset class.
Institutional Wave: Bitcoin ETFs On The Horizon
The anticipation that Bitcoin will soon be a regular feature in target-date portfolios, with allocations of 5% or greater, stems from the growing confidence and acceptance among financial advisors regarding cryptocurrency’s legitimacy as an asset class. According to Hougan, the current lack of BTC in major target-date funds in the US is only a transient phase.
Following their introduction in the US market, spot ETFs have seen a remarkable $12.5 billion in net inflows, establishing them as the most rapidly expanding category of new ETFs to date. Hougan anticipates that these funds will draw in excess of $200 billion by 2028, driven by increased accessibility and heightened scrutiny from institutional investors.
Hougan suggests that the trend observed in gold ETFs, marked by sustained growth post-introduction, could provide a blueprint for Bitcoin ETFs. Anticipation of endorsement by major financial institutions and wider institutional approval could drive significant expansion in this realm.
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The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
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