Bitcoin

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.

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.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.