Bitcoin will draw trillions of dollars from institutional investors over the next decade as financial advisers, family offices, pension plans and sovereign wealth funds begin to view it as a mainstream financial asset, Bitwise Chief Investment Officer Matt Hougan told CoinDesk.
The first professional investors to allocate at scale will be financial advisers and family offices, Hougan said in an email interview on Friday. The shift, said Hougan, is already visible in 13F filings for spot bitcoin ETFs and in moves by large wealth firms, including Morgan Stanley and Wells Fargo, to make bitcoin more accessible to clients.
Over time, Hougan expects the money to come from even larger pools of capital: foundations, endowments, pension plans, insurance companies, sovereign wealth funds and central banks.
“It’s a process that will take 10+ years,” Hougan said.
The scale matters. Those institutions control between $100 trillion and $200 trillion in assets globally, he said. A 1% allocation to bitcoin would be enough to support his long-term price targets.