Bitwise revealed that some major institutions will start investing in Bitcoin ETFs starting in Q2

Bitwise said it is in "serious due diligence discussions" with a range of various major financial and corporate entities interested in Bitcoin.

Matt Hougan, chief investment officer at Bitwise, said that institutions representing trillions of dollars in assets are expected to start investing through spot bitcoin ETFs. Hougan revealed the information in a weekly memo sent to investors, some of which was shared on social media.

Increase in institutional interest

Hougan wrote that Bitwise and other Bitcoin ETF issuers are likely to engage in "serious due diligence discussions" with a range of significant financial and corporate entities interested in securing Bitcoin investments.

He added that these entities include "major broker-dealers, institutional advisors and large corporations," without giving further details about who they are.

According to Bitwise's chief investment officer, these three types of entities will begin their first "significant inflows" into Bitcoin in the second quarter. He added that these flows are expected to "accelerate" within the year.

The forecast is based on the growing comfort level of digital asset products and the recognition of their potential to provide diversified investment opportunities.

Bitcoin ETF buyers**

Since their U.S. debut on January 11, spot bitcoin ETFs have quickly amassed more than $8.9 billion in net inflows, marking them as one of the most successful ETFs in history.

This surge in interest raises a key question for the investment community: Who is driving this remarkable growth?

Hougan's memo shows that spot bitcoin ETFs have attracted a wide range of interest from a wide range of investors, from individual retail investors to established entities such as hedge funds and asset managers.

He writes:

"The launch of the Bitcoin ETF has been hailed as a bridge for professional investors to enter the Bitcoin market. This is strongly confirmed by the experience of the past seven weeks. ”

Notably, registered investment advisors (RIAs), family offices, and venture capital funds have also been allocating Bitcoin exposure, indicating widespread confidence in the potential of these ETFs.

This inclusivity marks a significant shift in market trends, providing a regulated and familiar avenue for professional investors to explore the emerging cryptoasset investment landscape.