Bitcoin ETFs Make Small Steps Towards $50 Billion Success
Last October, analyst Matthew Hogan predicted that bitcoin ETFs would attract $55 billion in assets in their first five years.
By the end of August this year, about eight months after the funds launched, they had already surpassed $52 billion, according to TrackInsight data.
Individual and institutional investment:
So far, inflows into bitcoin ETFs have been driven primarily by individual investors, with a handful of large institutions, such as the Wisconsin Investment Board and hedge funds, publicly stating their stance on the funds via regulatory filings.
But for some, like attorney Andrew Lum of Norton Rose Fulbright, the real test of bitcoin ETFs will not be how much money they raise, but how they can boost liquidity.
Lum suggests that these funds could become a mainstream part of the market when financial advisors start allocating a portion of them to their clients’ portfolios, which would be the next stage in the evolution of the field. Even now, some ardent Bitcoin advocates admit that a full transformation could take six to 12 months.