Bitwise: "Institutional investors hold rather than sell even during Bitcoin (BTC) downturns"

JH Kim

Summary

Matt Hougan said spot Bitcoin exchange-traded funds (ETFs) recorded roughly $60 billion in net inflows from their launch through October last year.
He noted that although Bitcoin’s price fell about 50%, ETF outflows totaled less than $10 billion, indicating institutional investors showed a strong propensity to hold even in a bear market.
He added that institutional investors buying Bitcoin show strong conviction in a non-mainstream asset and are likely to tend to hold for a relatively long period even in a high-volatility environment going forward.

Forecast Trend Report by Period

An analysis suggests that institutional investors are sticking with a hold strategy rather than selling even during Bitcoin (BTC) downturns.

According to crypto-focused media outlet CoinDesk on the 16th (local time), Matt Hougan, chief investment officer (CIO) of Bitwise, said that spot Bitcoin exchange-traded funds (ETFs) recorded roughly $60 billion in net inflows from their launch through October last year.

Since then, Bitcoin’s price has fallen about 50%, but ETF outflows totaled less than $10 billion. He said this showed that institutional investors maintained a strong propensity to hold even in a bear market.

Hougan said, "Bitcoin’s standing has risen in recent years, but it still has the characteristics of a non-mainstream asset," adding, "Institutional investors buying Bitcoin now are taking on the risk of making a decision that differs from typical market choices."

He added, "Institutions investing in Bitcoin are generally investors with strong conviction, and are likely to tend to hold for a relatively long period even amid heightened volatility going forward."