An with the Securities and Exchange Commission (SEC) last week showed the asset manager had raised, in total, just under $8.9 million for its Bitcoin Fund, which provides accredited U.S. investors with exposure to bitcoin through a traditional product.
This marks the single-largest increase in assets raised in the fund’s two-year history. A shows the Bitcoin Fund had attracted $4.1 million in investment, meaning the fund has more than doubled in size in the past year.
While bitcoin has come on in leaps and bounds in its acceptance among the traditional investment community, Bitwise’s head of research, Matthew Hougan, told CoinDesk the more immediate cause for the surge in the fund’s size came from concerns over runaway inflation.
“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,” he said in an email.
“Bitcoin is the most efficient hedge for inflation that exists in today’s market,” he added.