Bitwise CIO Warns of Retail Capitulation While Institutional Demand for Bitcoin Persists
Bitcoin is now trading well below $100,000, dipping to its lowest level since June, and most retail investors have already slammed the panic button. Leverage trades have collapsed, market sentiment is wrecked, and the current conditions feel a lot like another crypto winter.
But Matt Hougan, Chief Investment Officer at Bitwise, isn’t fazed. He sees this brutal selloff as the perfect setup for Bitcoin to potentially reach a new all-time high before the year ends.
Speaking Tuesday on CNBC, Matt said:
> “It’s almost a tale of two markets. Crypto retail is in max desperation. We’ve seen leverage blowouts … the market for sort of crypto native retail is just more depressed than I’ve ever seen it.”
For him, this heightened desperation could be a bottom signal.
**Institutions Remain Confident**
While retail investors appear to be pulling the plug, Matt reports that institutions are still very much in the game—and they’re not backing away. Financial advisors and Wall Street firms he speaks with remain eager to gain exposure to Bitcoin, despite its recent pullback.
> “When I go out and speak to institutions or financial advisors, they’re still excited to allocate to an asset class that if you pan back and look over the course of a year, is still delivering very strong returns,” Matt explained.
**ETF Inflows Show Ongoing Strength**
Although ETFs tied to Bitcoin have experienced slower inflows since Q2, the money hasn’t stopped coming in. Matt highlighted continued strength in vehicles like iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and Grayscale Bitcoin Trust (GBTC), all of which continue to attract capital.
> “We continue to see strong inflows into Bitcoin,” he noted.
**Growing Interest Beyond Bitcoin**
Matt also pointed to the strong launch of Bitwise’s own Solana staking ETF (BSOL), which saw over $400 million in inflows during its first week—showing ongoing enthusiasm for diversified crypto exposure even in challenging market conditions.
While retail sentiment may have hit rock bottom, institutional interest could ultimately set the stage for the next upward move in Bitcoin and the broader crypto market.
https://bitcoinethereumnews.com/bitcoin/bitwise-cio-warns-of-retail-capitulation-while-institutional-demand-for-bitcoin-persists/