A huge number of investors are currently afraid that soon they would witness inflation, therefore, to save the value of their portfolios, they started investing millions in the Bitcoin fund of Bitwise.
A week ago, a report had been filed in the Securities and Exchange Commission (SEC) which shows that till that time, Bitwise had raised under $8.9 million for its Bitcoin Fund.
Accredited Investors To Get Exposed To Bitcoin
According to that filing, accredited US investors, who had put millions of their money in Bitcoin fund, will be exposed to Bitcoin through a traditional product.
Compared to the past two years data, this year, Bitwise has single-handedly raised a huge amount of funds for the asset.
In the year 2019, a filing submitted in the SEC reported that the Bitcoin Fund raised $4.1 million investment. But now, since its value has doubled, the Bitcoin Fund has raised around $9 million.
In recent times, the traditional investment community rapidly started accepting Bitcoin but according to Matthew Hougan, the head of research at Bitwise, it is not the reason for this sudden surge in investment.
Huge Amount Invested In Bitcoin Fund Of Bitwise
Hougan said that presently, the investors are more concerned about the inflation, therefore, they started investing such a huge amount in Bitwise’s Bitcoin Fund.
The head researcher further mentioned, “With the unprecedented expansion of the Fed’s balance sheet, the radical amounts of fiscal stimulus, and the Fed’s new and significantly more dovish inflation policy, [Bitwise clients] are looking for a hedge.”
Additionally, Hougan said that currently, the only hedge available in the market, which could save people from inflation, is Bitcoin.
Many of the clients of Bitwise earlier, were the financial advisors of the wealthy investors, but currently, they also feel that inflation can affect their portfolios too.
Investors believe that the fixed supply of 21 million Bitcoin could be a way to preserve the value of the digital asset at the time of inflation.