Reported by Cointelegraph, spot Bitcoin exchange-traded funds (ETF) could soon see an “even bigger wave” of institutional capital once the “major wirehouses” offer Bitcoin (BTC) 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 explained 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.”
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, according 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 reportedly 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 upcoming halving event.
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.
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