Bitwise Hunter Horsley Says Major US Bank Has Invested 20% of Its AUM in Bitwise Bitcoin ETF

In what could be seen as a forward-thinking investment, a well-known U.S. bank has jumped into the cryptocurrency market. The bank has invested a fifth of its wealth management money in a Bitwise exchange-traded fund (ETF), the company’s CEO and co-founder shared on his X (formerly Twitter) handle. The move perhaps not only legitimizes cryptocurrencies, but also signals a potential paradigm shift in the financial space.

Hunter Horsley, CEO and five-year co-founder of Bitwise Asset Management, revealed that a major US bank has invested in a ETF bit by bit through 20% of its wealth management subsidiaries. While he didn’t name the bank, Horsley said, “Bitcoin and cryptocurrencies are coming into the mainstream.”

According to the widespread opinion of the community, most people believe that this crowd of banks investing in ETFs represents more than just a financial investment; it also reflects a growing confidence in the cryptocurrency space. By adopting a regulated investment product like the Bitwise Bitcoin ETF, the bank recognizes that Digital assets are increasingly becoming part of traditional finance.

The Implications and Opportunities for Bitwise Paints a Bold Future for All Shades of ETFs

Conservative investors may now see cryptocurrencies as a real asset class, which could lead to more people investing in them. The bank’s move could inspire other banks to follow suit. Institutional involvement could also push regulators to create clearer rules for the cryptocurrency marketwhich would help both investors and the industry.

As cryptocurrencies become more widely accepted, financial institutions may develop new products and services related to the digital asset. The bank’s move diversifies its portfolio, recognizing that cryptocurrencies behave differently from traditional assets. The Bitwise Bitcoin ETF uses 10% of its profits to support open-source Bitcoin development, so investors indirectly help secure and innovate the network.

Bitwise Bitcoin ETF Performance So Far

THE Bitwise Bitcoin ETF (BITB) has been on a roll, with over $68 million in inflows in just one week. It now has over $2.5 billion in assets under management (AUM). BITB offers a way to invest in the price movements of Bitcoin without directly owning the cryptocurrency.

While this institutional interest is encouraging, there are still risks. Cryptocurrencies are highly volatile and can change in price rapidly. Governments around the world are still trying to figure out how to regulate this new market, and it is important to be wary of market manipulation.

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