Bitwise Spot Bitcoin ETF Asset Management Scale Reaches $1.2 Billion

Key Points:

• Bitwise spot Bitcoin ETF attracted $21 million on February 16, contributing to a weekly total of $230 million and reaching an asset management scale of $1.2 billion.
• The ETF joins five US-based Bitcoin funds with assets exceeding $1 billion, underscoring growing institutional interest in cryptocurrency.
• Chief Investment Officer Matt Hougan anticipates continued growth over the next 18 months, fueled by increasing institutional demand.

On February 16, Bitwise CEO Hunter Horsley announced that a staggering $21 million had poured into the Bitwise spot Bitcoin ETF (BITB), indicating robust investor interest in Bitcoin.

Read more: Bitcoin Spot ETF and Futures ETF: Differences To Make The Right Investment Choice

Bitwise Spot Bitcoin ETF Surpasses $1.2 Billion in Assets

This influx contributed to a weekly total of $230 million and boosted the fund’s asset management scale to approximately $1.2 billion.

The Bitwise spot Bitcoin ETF now joins an elite group of five US-based Bitcoin funds with assets exceeding $1 billion. Notably, Grayscale Bitcoin Trust leads the pack with $20.27 billion, trailed by BlackRock’s iShares Bitcoin Trust at $3.31 billion and Fidelity’s Wise Origin Bitcoin Trust at $2.75 billion.

Chief Investment Officer Matt Hougan expressed surprise at the ETF’s rapid growth, surpassing initial expectations. However, he cautioned that sustaining such growth economically might pose challenges, projecting a timeline of 18 months for continued expansion.

Challenges Ahead as Bitwise ETF Anticipates Continued Expansion

Ranked fourth in market capitalization, Bitwise‘s success is attributed in part to its modest 0.2% fee structure, though adjustments may occur with increased transaction volume.

Anticipating continued growth, Bitwise credits institutional interest and demand for driving future expansion. Yet, achieving this milestone wasn’t without effort; the company engaged in over 20,000 meetings with financial advisors last year in anticipation of regulatory approval.