Bitwise's chief investment officer, Matthew Hougan, suggested that institutional investors could inject up to $1 trillion into Bitcoin (BTC) through exchange-traded funds (ETFs) as they gradually enter the crypto market.

In a memo directed at investment professionals, Hougan addressed concerns about Bitcoin's price volatility, advising a composed and long-term perspective amidst its fluctuations between $60,000 and $70,000.

Despite short-term instability, Hougan pointed out several upcoming key events to anticipate, including the Bitcoin halving and the potential approval of spot Bitcoin ETFs on major national account platforms like Morgan Stanley or Wells Fargo.

He emphasized the necessity for investment committees and consultants to complete formal due diligence before investing in Bitcoin. Hougan predicted that while the Bitcoin price might oscillate sideways in the near term based on sentiment shifts, the long-term outlook remains bullish.

He highlighted the significance of spot Bitcoin ETF approvals in January, which significantly opened crypto to investment professionals. Moreover, Hougan noted that the influx of $12 billion into ETFs since their launch marks a remarkable success, but he believes that once global wealth managers begin allocating even just 1% of their portfolios to Bitcoin, it could translate to $1 trillion inflows into the crypto space.

He concluded that this potential allocation from wealth managers signifies a substantial opportunity for growth in the crypto market.