A significant shift in the investment landscape is underway as institutional investors increasingly turn to spot Bitcoin ETFs. According to Bitwise CIO Matt Hougan, over 700 professional investment firms are expected to invest in these ETFs, pushing the total assets under management (AUM) to nearly $5 billion.

The Bitwise CIO's memo highlights the growing momentum of institutional adoption, with more than 500 firms already invested in Bitcoin ETFs. This trend is expected to continue, driven by the May 15 filing deadline and the subsequent release of 13F filings.

Three key takeaways emerge from Hougan's memo. Firstly, professional firms are increasingly owning Bitcoin ETFs, with 563 firms reported to hold $3.5 billion worth as of May 9. Secondly, the scale of this professional investor ownership is unprecedented for a new ETF, with most new ETFs attracting far fewer 13F filers in their initial months. Lastly, while professional investors currently own only 7-10% of all BTC ETF assets, the bulk of the float is still held by retail investors, indicating potential for larger institutional allocations.

Bitwise CEO Hunter Horsley notes the shifting perceptions surrounding Bitcoin ownership, from being seen as a niche investment to gaining widespread acceptance among institutional investors. Millennium Management has emerged as a significant player, allocating over $2 billion to various Bitcoin ETFs, including BlackRock's iShares Bitcoin Trust, Fidelity Wise Origin Bitcoin Fund, and Grayscale Bitcoin Trust.

This level of commitment from major institutional players underscores the growing acceptance and integration of Bitcoin ETFs within traditional financial markets. As more firms invest in these ETFs, the total AUM is expected to reach $5 billion, marking a significant milestone in the adoption of Bitcoin by institutional investors.