Ric Edelman, founder of the Digital Assets Council of Financial Professionals, estimates $150 billion in inflows into spot Bitcoin ETFs solely from independent advisors by the end of 2025.
The Math To $150,000 Bitcoin: At the Exchange ETF conference in Miami, Edelman and Bitwise Asset Management Chief Investment Officer Matt Hougan discussed the arithmetic behind the flows in an interview with CNBC’s Bob Pisani.
Edelman said independent advisors control $8 trillion in assets, citing surveys that show 77% of them want to add Bitcoin to their portfolios, with an average target allocation of 2%-3%. This number excludes inflows from wirehouses, regional broker-dealers and institutional investors.
According to Edelman's estimates, this will put Bitcoin BTC/USD at $150,000 within two years.
He further cited the fixed supply and strong demand, which will eventually lead to rapidly surging price levels.
Hougan agreed, stating financial advisors are not short-term investors; they are making allocations for the longer run.
Also Read Bitcoin ETFs Lead Top 25 Global ETF Asset Inflows: 'Start Of A Bull Cycle,' Says Analyst
ETF Landscape — Well Regulated And Attractive: Hougan added that the spot Bitcoin ETF is not only a win for crypto but for the overall ETF industry.
ETFs are tracking prices well, investors have peace of mind with access to all the data and ETFs are simple and secure with low fees.
He added that the big unlock for the spot ETF market will be the financial advisor market: independent registered investment advisors and wirehouses approving the ETF product will also invest in spot Bitcoin ETFs.
Both speakers agreed that having a spot Bitcoin ETF in an investor’s portfolio is mainly for portfolio diversification.
They see Bitcoin as a non-correlated asset that when used for rebalancing and managed professionally will not lead to any volatility for the portfolio.
Hougan also pointed to Bitwise 10 Crypto Index Units Beneficial Interest BITW, which provides investors with diversified exposure to Bitcoin and leading cryptocurrencies.
Bitcoin ETFs Outperform Gold ETFs: Hougan indicated that the Bitwise Bitcoin ETF BITB is seeing purchases from registered investment advisors, family offices and people rotating into it from the higher-fee products.
With Bitwise charging 20 basis points, fees are half that of the largest gold ETF.
In an X post on Feb.9, Hougan outlined how the first gold ETF, SPDR Gold Trust, after its most successful launch, followed this trend in its first month: eight days of positive flows, one day of negative flows, and 11 days with zero flows.
He concluded: “The sustained demand we're seeing in Bitcoin ETFs is remarkable.”
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