2024

Bitcoin ETF

Bitcoin

Spot Bitcoin exchange-traded funds (ETF) could soon see an “even bigger wave” of institutional capital once the “major wirehouses” offer Bitcoin <a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">(BTC)</a> ETF trades, according to Bitwise.
“I think there’s an even bigger wave coming in a few months as we start to see the major wirehouses turn on,” Bitwise’s CIO Matt Hougan <a href="https://www.youtube.com/watch?v=VmmrLxfdHxk" target="_blank" rel="noopener noreferrer nofollow">explained</a> in a Feb. 29 interview with CNBC, adding that the first wave of Bitcoin ETF interest has primarily come from retail, hedge funds and independent financial advisors.
“So we’re going to see the next wave of institutional capital coming,” said Hougan, who referred to the ETFs as Bitcoin’s “IPO moment.”
<blockquote class="twitter-tweet">
 "With <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Bitcoin</a> right now ... there is too much demand and not enough supply." - Matt Hougan, CIO Bitwise <a href="https://t.co/1B0joUQ1Pp" rel="noopener noreferrer nofollow">pic.twitter.com/1B0joUQ1Pp</a>— Michael Saylor⚡️ (@saylor) <a href="https://twitter.com/saylor/status/1763229274130059286?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">February 29, 2024</a>
</blockquote>
Interestingly, two of the largest wirehouses, Bank of America’s Merrill Lynch and Wells Fargo have reportedly started offering spot Bitcoin ETFs to its wealth clients, <a href="https://news.bloomberglaw.com/business-and-practice/bofas-merrill-wells-fargo-offer-bitcoin-etfs-to-wealth-clients" target="_blank" rel="noopener noreferrer nofollow">according</a> to a Feb. 29 Bloomberg report.
However it is currently only available to clients who request the products, Bloomberg said, citing people familiar with the matter.
Morgan Stanley is also <a href="https://au.finance.yahoo.com/news/morgan-stanley-reportedly-eyeing-spot-172655082.html" target="_blank" rel="noopener noreferrer nofollow">reportedly</a> considering spot Bitcoin ETF onits brokerage platform.
Hougan said the Bitcoin ETFs have triggered a “new era of price discovery.”
The supply-demand dynamic is just “off the hook,” Hougan said of the amount of Bitcoin ETFs purchased relative to Bitcoin mined day-to-day and the <a href="https://cointelegraph.com/learn/bitcoin-halving-how-does-the-halving-cycle-work-and-why-does-it-matter" rel="noopener noreferrer nofollow">upcoming halving event.</a>
<blockquote>
 “There’s too much demand and not enough supply.”
</blockquote>
Hougan says the next wave of institutional interest could push Bitcoin’s price “substantially higher.”
When asked how high, Hougan said Bitcoin could blow Bitwise’s initial 2024 prediction of $80,000 out of the park and reach anywhere between $100,000 to $200,000 or even higher.
Related: <a href="https://cointelegraph.com/news/despite-23-percent-gains-bitcoin-options-traders-still-not-bullish" rel="noopener noreferrer nofollow">Despite 23% gains, Bitcoin options traders still not bullish</a>
The Bitwise Bitcoin ETF (BITB) has recorded the fourth largest inflows of $1.11 billion since the <a href="https://cointelegraph.com/news/bitcoin-etfs-hit-10b-milestone-just-month-after-approval" rel="noopener noreferrer nofollow">spot Bitcoin ETFs launched</a> seven weeks ago, <a href="https://twitter.com/BitMEXResearch/status/1763100118151045595" target="_blank" rel="noopener noreferrer nofollow">according</a> to BitMEX Research.
<a href="https://cointelegraph.com/news/spot-bitcoin-etf-inflow-ath-680-m" rel="noopener noreferrer nofollow">Inflows reached $676.8 million </a>on Feb. 28, marking a new all-time high for the ecosystem.
BlackRock’s IBIT and Fidelity’s FBTC lead the way with $7.1 billion and $4.7 billion in flows respectively.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-03/841c23f1-7ab6-4773-9f58-a2448439ded4.png">
 <figcaption style="text-align: center;">Spot Bitcoin ETF flow data. Source: BitMEX Research
 </figcaption>
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Magazine: <a href="https://cointelegraph.com/magazine/wolf-of-all-streets-world-bitcoin-hits-1m-1-million-hall-of-flame/" rel="noopener noreferrer nofollow">Wolf Of All Streets worries about a world where Bitcoin hits $1M: Hall of Flame</a>

Bitcoin ETFs set for ‘even bigger wave’ in next few months: Bitwise

Cointelegraph

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