Bitwise co-founder, Hunter Horsley, spoke at the Bitcoin Investor Day event in New York City, alongside other big names in the crypto world such as Galaxy, NovaGrats, and Skybridge Capital. He joined Yahoo Finance to discuss the importance of the event and why it’s attracting attention from traditional investors.
ETF Launch Increasing Crypto Investment
The launch of Bitcoin ETFs has been a turning point for the crypto industry, with many traditional investors feeling more confident to engage with Bitcoin. Horsley believes that the recent ETF activity has meant a lot of new investors are feeling comfortable enough to participate and access Bitcoin. Horsley went as far as to compare the ETF launch to a company’s IPO, suggesting that the milestone has brought a whole new class of investors to the world of Bitcoin. It allows traditional investors to enter the space who could not previously.
Outflows Don’t Deter Crypto Firms
Regarding outflows, Horsley remained optimistic. Despite some outflows from Bitcoin ETFs, the Bitwise Bitcoin ETF took in over $2 Billion in assets under management (AUM). The outflows might have come from a small section, but Horsley sees it as temporary and an opportunity. Bitwise has over 15 investment solutions, including the largest publicly traded crypto index fund, positioning Bitwise as a specialist in the industry ready to capitalize on opportunities when they arise.
Client Approach for Comfortable Crypto Investing
Clients work with Bitwise as a specialist in the space to navigate what’s happening. Crypto moves fast, and having a partner in the space who can take investors through what’s going on is of enormous benefit. Bitwise’s approach has always been to partner with the SEC, constructively incentivizing them to evaluate risk and making considerations of concerns in the crypto space. Bitwise is hopeful their Ethereum ETF approval process with the SEC is successful. The SEC has a deadline of May 23rd to make a decision. Bitwise will continue to navigate regulatory hurdles with an eye for opportunities to bring to clients.
Heartening Future for Bitcoin Investors
Looking at prior “havs” historically, the Bitcoin halving offers an extended bull market after it occurs, regardless of the pre-halving market conditions. Investors are trying to price in or speculate on these events’ implications, but after the halving occurs, the price action tends to follow the typical supply and demand dynamic of equating reduced supply and increased demand with subsequent price gains. Horsley believes this will be constructive for Bitcoin investors. Halvings, with their reduction in new Bitcoin supply, have become focal points for investors and serve as yet another reason to own Bitcoin.
🔥 Hot Take on Crypto Investors and Altcoins
Altcoins are still very popular among retail traders, but institutional investors are sticking to Bitcoin, according to Samantha McLemore, a portfolio manager at Miller Value Partners. She suggests that nascent altcoins’ risks are too high, with many trading under a $1 market cap, which is too small for them to become viable in the long term. Additionally, investors perceive Bitcoin as the most significant digital currency with more widespread adoption compared to others.
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