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The cryptocurrency sector is witnessing a significant shift as institutional investors move towards crypto exchange-traded funds (ETFs). A recent development comes from Bitwise Asset Management, whose Bitcoin BTC) and Ethereum (ETH) ETFs have attracted a surge of capital from a large Registered Investment Advisor (RIA).
Interestingly, this influx of institutional investment underscores the rising confidence in the long-term viability of digital assets within traditional financial ecosystems. According to Bitwise CEO Hunter Horsely on X, the RIA accumulated millions of dollars worth of their Bitcoin ETF (BITB) and Ethereum ETF (ETHW). Likewise, the RIA invested in Bitwise 10 Crypto Index ETFs (BITW) across client portfolios.
Spot BTC and ETH ETFs Experienced Inflows
The latest announcement comes amid record-breaking inflows into spot ETFs. According to data from Farside Investors, Bitcoin ETF experienced $252 million in inflows, bringing the weekly inflows to $506.4 million. BlackRock IBIT led the chart with $86.8 million, while Fidelity Investments FBTC saw $64 million in inflows on August 23. Also, Bitwise Bitcoin ETFs saw an inflow of $42.3 million.
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Ether ETFs have had a more challenging time compared to Bitcoin ETFs. On August 23, ETH ETFs experienced net outflows of $5.7 million, resulting in a weekly total of $44.5 million in outflows. The Grayscale Ethereum Trust (ETHE) had the highest outflows at $9.8 million. However, Bitwise’s ETH ETF experienced a small increase of $1.4 million. VanEck’s ETHV had the highest increase, with $2 million in inflows.
With major financial institutions now considering crypto ETFs as part of their long-term investment strategies, the narrative around cryptocurrency is evolving.
Bitwise CIO Bullish on Bitcoin ETFs
As reported by TheCoinRise, Bitwise Chief Investment Officer Matt Hougan is incredibly bullish on spot Bitcoin ETFs following the 13-F filing from various financial institutions based in the United States. Matt Hougan initially predicted that 700 professional firms would invest nearly $5 billion in Bitcoin ETFs.
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This projection was exceeded, as K33 Research’s latest report in May showed more than 900 firms’ disclosure of Bitcoin ETF holdings. According to Hougan, 563 professional investment firms reported owning a combined $3.5 billion worth of Bitcoin ETFs. K33 Research data, shared by Senior Analyst Ventle Lunde on May 16, confirmed that 937 professional firms were invested in U.S. spot ETFs as of March 31.
For comparison, gold ETFs saw only 95 professional firms investing in their first quarter.
Big Trading Volumes for Ether ETFs
The recent launch of Ether spot ETFs is a moment of celebration for the crypto community. These trading products generated around $1.08 billion in cumulative trading volume on their first day. This impressive figure, though 23% of what spot Bitcoin ETFs saw on their first day, signaled a promising future for Ether ETFs.
The converted Grayscale Ethereum Trust (ETHE) and BlackRock’s iShares Ethereum Trust (ETHA) led the pack with $458 million and $248.7 million in trading, respectively. Following them were the Fidelity Ethereum Fund (FETH) with $137.2 million and the Bitwise Ethereum ETF (ETHW) with $94.3 million. Meanwhile, Bitwise pledged 19% of its profit from ETF trading to Ethereum developers.
