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Corporations haven’t even started buying bitcoin ETFs yet: Bitwise

Despite the interest from individuals, corporations can wait until Bitcoin ETFs are more mature or develop a more stable position.

Date: 2024-03-07 Author: Łukasz Michałek
Corporations haven’t even started buying bitcoin ETFs yet: Bitwise

According to cryptocurrency asset manager Bitwise, demand for bitcoin ETFs is just beginning to pick up, and some of the biggest players in the market have yet to start buying.

Bitwise CIO Matt Hougan posted a post on X on Tuesday in which he described the groups of investors who have already bought, compared to those who “will soon be buying bitcoin ETFs.”

Hidden demand for bitcoin ETFs

Potential prospective investors include agency advisors, corporations and institutional consultants.

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Although initially hesitant, Wells Fargo and Merrill Lynch late last month began allowing their clients to invest in Bitcoin ETFs offered by BlackRock, Fidelity and others. The wealth management group wanted to see if the ETFs would be able to trade before making them available to clients; given their size and flows, they have proven to be very successful.

In an interview with CNBC last week, Hougan explained that retail buyers make up a significant portion of the initial demand for ETFs. This group includes asset managers, hedge funds, venture capital funds, family offices and registered investment advisors (RIAs). However, according to Hougan, many large wirehouses have not yet connected to ETFs.

Corporate buyers of bitcoin

As of March 2024, MicroStrategy had 193,000 tokens and is still the largest corporate owner of BTC in the world. The company’s goal is to raise more money to buy Bitcoin, so it recently announced a $600 million convertible bond offering.

Bitwise anticipates that foundations, pension funds, states and transnational corporations will support the ETFs. El Salvador is the only country so far to publicly confirm that it has added BTC to its national treasury.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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