Bitwise: “Institutional investors are holding rather than selling even in Bitcoin (BTC) downturns”

JH Kim

Summary

Matt Hougan, CIO of Bitwise, said spot Bitcoin ETFs recorded roughly $60 billion in net inflows from their launch through October last year.
Even after Bitcoin’s price fell about 50%, ETF outflows totaled less than $10 billion, which he said shows institutional investors maintained a strong tendency to hold even in a bear market.
Hougan added that institutional investors in Bitcoin are generally high-conviction investors and are likely to tend to hold for relatively long periods even amid high-volatility conditions 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 CoinDesk, a digital-asset (crypto) news outlet, Matt Hougan, Chief Investment Officer (CIO) at Bitwise, said that spot Bitcoin ETFs recorded roughly $60 billion in net inflows from their launch through October last year.

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

Hougan noted, “Bitcoin’s stature has risen in recent years, but it still retains the characteristics of a non-mainstream asset,” adding, “Institutions buying Bitcoin now are taking on the risk of making a decision that diverges from typical market choices.”

He added, “Institutions that invest in Bitcoin are generally high-conviction investors, and are likely to show a tendency to hold for relatively long periods even amid heightened volatility in the future.”