Bitwise's Chief Investment Officer, Matt Hougan, is extremely optimistic about spot Bitcoin (BTC) exchange-traded funds (ETFs) following the recent 13-F filings from various U.S. financial institutions.

Recent data shows a significant increase in institutional investments in Bitcoin ETFs, marking a pivotal moment for the cryptocurrency market. Hougan's initial prediction of 700 professional firms investing nearly $5 billion in Bitcoin ETFs has not only been accurate but has exceeded expectations.

K33 Research's latest report reveals that more than 900 firms have disclosed their Bitcoin ETF holdings, with 563 professional investment firms reporting a combined $3.5 billion worth of Bitcoin ETFs. As of March 31, 937 professional firms were invested in U.S. spot ETFs, while gold ETFs saw only 95 professional firms investing in the first quarter.

Bloomberg Senior ETF Analyst Eric Balchunas noted that the largest ETFs have attracted the most institutional capital, with BlackRock's IBIT having over 400 holders. Hougan emphasized the significance of this trend, stating that it is a clear indication that professional investors are not alone in considering Bitcoin exposure.

Despite the influx of institutional money, the Bitwise CIO pointed out that professional investors own just 7–10% of the total Bitcoin ETF assets under management (AUM), while K33 Research data suggests this share is 18%. Retail investors still own the majority of the float, with professional investors holding $11.06 billion by the end of Q1, representing 18.7% of the Bitcoin ETF AUM.

Hougan argued that the portrayal of Bitcoin ETFs as "retail-driven" might overlook an emerging trend, leaving him "incredibly bullish" based on the initial 13F filings. He described a typical four-step investment trajectory for institutions, starting with due diligence and eventually leading to substantial platform-wide allocations across the entire client book, typically ranging from 1-5% of the portfolio about six months after the initial allocation.

Using Hightower Advisors as an example, the Bitwise executive explained that its current Bitcoin ETF allocation is just 0.05% of its assets. If they follow the typical investment process, a 1% allocation would equate to $1.2 billion from a single firm. Hougan concluded that multiplying this by the growing number of professional investors participating in the space can begin to explain his enthusiasm for the future of Bitcoin ETFs.