Bitwise CIO expects surge in crypto ETP allocations by year-end, foresees 5% portfolio norm

By: cryptosheadlines|2025/05/15 07:00:14
0
Share
copy
Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Bitwise Chief Investment Officer Matt Hougan said on May 14 that a “big unlock” is occurring across the financial advisory space regarding crypto investments.After attending a major advisory firm’s conference, Hougan shared his expectations that most major firms will enable crypto exchange-traded product (ETP) access by the end of 2025. He added that interest in crypto exposure is intensifying and predicted that the new measure for inflows into crypto ETPs will be “many billions.” After over one year since their launch, collective daily inflows for US-traded crypto ETPs have surpassed $1 billion in five instances so far, according to Farside Investors data.Hougan also said that portfolio allocation norms for crypto are shifting and “5% is the new 1%.” He further explained that institutions are becoming more comfortable with higher crypto weightings in traditional portfolios.Institutions adjust crypto allocationsAsset managers have historically advocated modest crypto allocations, citing volatility and risk concentration. In December, BlackRock’s Investment Institute defined a 1% to 2% Bitcoin allocation as a “reasonable range” for multi-asset portfolios. That recommendation has since translated into practice. BlackRock incorporated Bitcoin (BTC) into its $150 billion model portfolio offerings via the iShares Bitcoin Trust (IBIT), assigning a 1% to 2% weight in target allocations.The launch of US spot Bitcoin and Ethereum (ETH) ETPs in 2024 provided regulatory-compliant exposure mechanisms at scale for institutional clients, prompting many advisors to reevaluate their crypto positioning.Hougan also reported increased advisor inquiries about Ethereum, stating he fielded more questions on the asset “in the past few days than the past six months.” Bitcoin and Ethereum draw parallel interestWhile Bitcoin remains the dominant product by scale, Ethereum has emerged as a key area of curiosity for professionals, according to Hougan.Bitwise shared in April that US spot Bitcoin ETPs held $93.2 billion in assets under management (AUM) as of December 2024, contrasting with spot Ethereum ETPs that totaled $6.3 billion in AUM. Despite the disparity, ownership of both products is dispersed across key institutional categories.In Bitcoin ETPs, hedge funds (36.97%) and investment advisors (33.11%) account for most institutional ownership. On the other hand, Ethereum ETPs show more balanced exposure between investment advisors (29.79%), brokerages (25.25%), and hedge funds (24.74%), while family offices show a stronger preference for Ethereum. Investment advisors and hedge funds allocated 5.8% and 4.5% of their total crypto allocation to Ethereum, while family offices had 25% of their nearly $173 million crypto allocation targeted to Ethereum.Hougan’s remarks reinforce industry expectations that professional investment access to crypto is entering a new maturity phase. As product availability widens and allocation norms shift upward, crypto may play a more regularized role in portfolio construction.Mentioned in this articleLatest Alpha Market ReportSource link

You may also like

Particle Founder: The entrepreneurial insights I have gained the most from in the past year

Stop lean startup, stop lightning entrepreneurship, and think carefully about what your product aspirations are.

Huang Renxun's latest podcast transcript: The future of Nvidia, the development of embodied intelligence and agents, the explosion of inference demand, and the public relations crisis of artificial intelligence

The competition in the future is not just about whose model is larger or whose computing power is stronger, but also about who understands the industry better, who can embed AI more deeply into real processes, and who can organize these capabilities into a runnable and scalable system.

OKX Ventures Research Report: AI Agent Economic Infrastructure Research Report (Part 1)

The existing infrastructure is hostile to the Agent economy. Agents can think and act independently at the "capability level," but at the "economic level," they are still locked into infrastructure designed for humans.

The migration of settlement rights: B18 and the institutional starting point of on-chain banks

In the traditional system, banks decide the settlement; in the on-chain system, code begins to take over this responsibility.

From Tencent and Circle: Looking at the Simple and Difficult Questions of Investment

The AI narrative continues to ferment, but the recent performance of related stocks varies, with some in the midst of summer and others as if in winter.

The second half of stablecoins no longer belongs to the crypto circle

What Coinbase doesn't want, Mastercard is eager to buy.

Popular coins

Latest Crypto News

Read more