Bitwise Launches Crypto Model Portfolios as Advisors Scale ETF Allocations

Bitwise Asset Management launched Model Portfolio Solutions for Digital Assets on February 3, offering financial advisors a structured way to include crypto exposure in client portfolios via ETFs. The firm introduced seven portfolios, categorized as 'Core' and 'Thematic', to suit various investor profiles and risk tolerances according to the announcement.

The new product is part of a growing trend in the financial industry, where model portfolios are becoming a critical tool for advisors. Data shows these portfolios have grown from managing $400 billion in assets to over $645 billion between 2023 and 2025.

The launch reflects the increasing complexity in the ETF-based crypto allocation landscape. Advisors now have a streamlined framework to access diversified crypto exposure, reducing the need for individual product selection.

Why Did This Happen?

The market for structured crypto investment is becoming as ETFs gain traction among institutional and retail investors. Bitwise's launch is timed with a broader industry shift, as advisors seek to incorporate digital assets into their investment strategies.

Digital asset ETFs have seen significant growth in recent years, with spot Bitcoin ETFs attracting renewed interest. After a four-day outflow streak, the funds recorded $562 million in inflows on Monday, signaling a potential reversal of sentiment.

How Did Markets Respond?

Bitcoin traded above $78,000 as of February 3, with spot ETFs drawing fresh inflows. However, Ethereum and XRP ETFs recorded outflows, reflecting caution among investors.

Bitcoin ETFs have seen cumulative inflows of $55.57 billion, with total assets under management at $100.38 billion. Ethereum ETFs, on the other hand, have recorded a net outflow of $3 million, and XRP ETFs have seen $405,000 in outflows.

The price performance of Bitcoin has been mixed, with technical indicators showing a bearish bias. The cryptocurrency is trading below key moving averages and the MACD indicator remains below its signal line, suggesting continued downward pressure.

What Are Analysts Watching Next?

Bitcoin's price is closely monitoring the $78,000 support level. A break below this level could trigger further losses, potentially pushing the price toward $74,604.

Analysts are also watching ETF cost basis levels, as Bitcoin has now fallen below this metric. Galaxy Digital's Alex Thorn noted that the ETF cost basis is currently at $84,000, and a sustained move below this level could serve as near-term support.

In addition to Bitcoin, Ethereum and XRP are under pressure, with Ethereum trading below $2,300 and XRP holding near $1.60. Both assets face technical challenges, with Ethereum ETFs showing sustained outflows and XRP ETFs fluctuating between inflows and outflows.

Meanwhile, the broader crypto market remains under pressure. Market capitalisation has grown to $2.65 trillion, but the rebound has stalled near key resistance levels. Analysts warn that bearish momentum is likely to persist without major macroeconomic or regulatory catalysts.

The launch of Bitwise's model portfolios aligns with a broader industry shift toward institutional-grade digital asset exposure. As ETFs become more widely adopted, advisors are looking for structured solutions to manage client portfolios effectively.

ETF flows remain a key indicator of market sentiment. While Bitcoin ETFs showed a modest recovery in inflows, Ethereum and XRP ETFs continue to face outflows. This divergence highlights the uneven demand across the crypto asset class.

Analysts are also monitoring the potential impact of regulatory developments, particularly the progress of the CLARITY Act. While recent odds of passage have diminished, any legislative movement could serve as a catalyst for the broader market.