Bitwise: the share of bitcoin in investors' portfolios will reach 3%

A number of asset managers have already allocated 3% of customer funds for the first cryptocurrency, and many are ready to do so in the near future. This was stated by Bitwise CIO Matt Hougan.

According to him, earlier in the institutional environment there was concern about the possible collapse of digital gold to zero. In this situation, bitcoin could count on a share of no more than 1% in the portfolio, despite the impressive dynamics.

The launch of spot ETFs in the United States in January has changed the situation, Hougan is sure. Against the background of the success of the products, the narrative of "zeroing out" disappeared from the agenda and the target level of 3-5% became more realistic.

"Real institutional investors (pension funds, charitable foundations, etc.) will still monitor the distribution of funds of less than 1%, but for the wealth management market, more than 3% is a new topic," the Bitwise manager wrote.

He noted that despite the continued influx of funds into bitcoin exchange-traded funds, many large investors are still unable to invest in the instruments.

More than a hundred institutions, according to Hougan, carry out due diligence procedures for products, which will take at least two years.

The expert compared the situation with the emergence of gold-based ETFs, which have been gaining market share for about seven years. Hougan believes that bitcoin will be able to do this faster.

He is convinced that the demand for the asset from end investors is still in its infancy.

In response to a question about the impact of regular rebalancing of portfolios on the price of bitcoin, Hougan noted that in general this should reduce volatility.

Source: https://forklog.com/news/bitwise-dolya-bitkoina-v-portfelyah-investorov-dostignet-3