Matthew Hougan of Bitwise advised traders to "stay calm and maintain a long-term perspective."
Matthew Hougan, the chief investment officer at Bitwise, suggested that institutional investors could potentially invest up to $1 trillion in Bitcoin through exchange-traded funds (ETFs) as they gradually enter the crypto market.
In a memo directed to investment professionals, Hougan acknowledged worries about Bitcoin's price volatility, advising a composed approach and emphasizing the importance of taking a long-term perspective amidst the asset's fluctuations between $60,000 and $70,000.
This possible wave of institutional investment in Bitcoin is influenced by a number of variables, including the halving of the price of Bitcoin and the expected acceptance of spot Bitcoin ETFs on big national account platforms like Wells Fargo and Morgan Stanley.
Hougan also underlined that while consultants and investment committees complete their official due diligence on Bitcoin, the industry needs to have patience. Before these organizations can invest in the asset with confidence, a comprehensive analysis is required.
Hougan indicated that while the market awaits these significant developments, Bitcoin's price might experience periods of sideways movement in response to minor shifts in sentiment.
Nevertheless, he expressed confidence in a different trajectory for the long term. Hougan asserted:
"Over the long term, we are bullish on Bitcoin. Despite potential short-term fluctuations, its value has surged by almost 300% over the past 15 months, and there are compelling reasons to anticipate this trend will persist."
Hougan claims that the spot Bitcoin ETF approvals in January significantly increased the accessibility of cryptocurrency for financial professionals. Additionally, he thinks that experts in investments who manage trillions of dollars are only now beginning to venture into cryptocurrency. More professional investors would "take years, not months," according to Hougan.
The executive added that the $12 billion that has poured into ETFs since their launch is thrilling and "the most successful ETF launch of all time." Nevertheless, he thinks that $1 trillion will enter the market once global wealth managers start to allocate 1% of their portfolio to Bitcoin.
March 2024, Cryptoniteuae