Spot Bitcoin exchange-traded funds (ETFs) may experience a surge in institutional capital once major wirehouses begin offering Bitcoin ETF trades, according to Bitwise. In an interview with CNBC, Bitwise’s CIO Matt Hougan stated that while the first wave of Bitcoin ETF interest came from retail investors, hedge funds, and independent financial advisors, the next wave will involve institutional investors. Hougan referred to the ETFs as Bitcoin’s “IPO moment” and predicted that the influx of institutional capital could significantly increase Bitcoin’s price. Interestingly, Bank of America’s Merrill Lynch and Wells Fargo have reportedly started offering spot Bitcoin ETFs to their wealth clients upon request. Morgan Stanley is also considering offering spot Bitcoin ETFs on its brokerage platform. Hougan believes that the Bitcoin ETFs have triggered a “new era of price discovery” and expects the next wave of institutional interest to push Bitcoin’s price substantially higher, possibly reaching $100,000 to $200,000 or even higher. The Bitwise Bitcoin ETF has recorded significant inflows since its launch, reaching a new all-time high of $676.8 million on February 28.
Bitwise predicts a forthcoming surge of even greater magnitude in Bitcoin ETFs over the next few months.