Bitwise Chief Information Officer (CIO) Matt Hougan asserted that investment advisors are adopting spot Bitcoin ( BTC ) exchange-traded funds (ETFs) faster than any other ETF launched in recent history.

Hougan made this statement in response to a Sept. 8 social media post by researcher Jim Bianco, who asserted that less than 10% of US-traded spot Bitcoin ETFs' assets under management (AUM) originate from investment advisors. He added that the ETFs are more of a “small-scale investment tool” than a significant adoption catalyst.

Nearly $1.5 billion from advisors

Hougan examined BlackRock’s iShares Bitcoin Trust ( IBIT ) net flows related to investment advisors, which amount to $1.45 billion. Compared to the total $46 billion in inflows from spot Bitcoin ETFs, Hougan agrees with Bianco that this is indeed a relatively small amount.

However, excluding all other flows from Bitcoin ETFs and concentrating solely on the $1.45 billion flow related to investment advisors, Hougan explained that this would place IBIT among the top two fastest-growing ETFs launched in 2024, out of over 300 funds.

He added:

“The only ETF that ‘surpasses’ it in terms of assets is KLMT, an ESG ETF that was initially funded by a single investor with $2 billion and trades on average ~250 shares per day, with zero adoption by investment advisors.”

Hougan further emphasized that investment advisors are adopting Bitcoin ETFs at a faster rate than any other ETF in history, despite the comparatively lower investment amounts compared to other investors.

Hougan added:

“It is simply that their historical inflows are overshadowed by the even more substantial investments made by other investors.”

Bloomberg's senior ETF analyst Eric Balchunas shared the Bitwise CIO's perspective and confirmed that the nearly $1.5 billion in advisor allocations represent “more natural inflows” than any other ETF launched this year.

Not too staggering

Jim Bianco's post on X was triggered by significant outflows from US-listed spot Bitcoin ETFs recorded last week. According to data from Farside Investors , these ETFs collectively experienced a loss of $706 million last week, with nearly $288 million in departing capital registered on September 3.

Balchunas noted that the major outflows represent 0.5% of Bitcoin ETFs’ total AUM, which he considers is not “ too substantial. ” The Bloomberg analyst added:

“[People] are so accustomed (or perhaps spoiled) by how large the inflows are that any small outflow causes panic. It's like the Princess and the Pea Syndrome).”

Additionally, Balchunas pointed out that the correct way to measure an ETF’s health is by tracking its flows since dollar-denominated assets under management can shrink if the asset price goes down.

He concluded by emphasizing that Bitcoin ETFs have over 1,000 institutional holders after two 13F periods, which he added is “beyond unprecedented.”

Balchunas stated that 20% of IBIT's shares are owned by institutional investors and large financial advisors and predicts this percentage to rise to 40% within the next year.