Bitwise CIO Expects Surge in Demand for Spot Bitcoin ETFs as Major U.S. Wirehouses Enter Market

Bitwise chief investment officer Matt Hougan is anticipating a surge in demand for spot bitcoin ETFs as larger U.S. wirehouses prepare to enter the market. The current demand for these ETFs has primarily been driven by retail investors, hedge funds, and independent financial advisors. Bitwise’s Bitcoin Fund (BITB) is among the four spot bitcoin ETFs that have surpassed $1 billion in assets under management (AUM) since their launch.

The ten spot bitcoin ETFs have experienced a remarkably successful launch, with trading volume and inflows reaching unprecedented levels this week. Hougan believes that even more demand is on the horizon. In an interview with CNBC, he stated, “I think there’s an even bigger wave coming in a few months as the major wirehouses come on board.” Some of the largest wirehouses in the U.S., such as Bank of America, Wells Fargo, Goldman Sachs, and JPMorgan, have yet to offer these funds to their clients.

On Wednesday, the bitcoin ETFs shattered their daily volume record, with approximately $7.7 billion in trading, surpassing the previous record of $4.7 billion set just a day earlier. BlackRock’s iShares Bitcoin ETF (IBIT) saw nearly $3.3 billion in volume, more than double the previous record of $1.35 billion. The fund now boasts over $9 billion in AUM, leading the pack among the new funds.

Following IBIT, Fidelity’s FBTC has accumulated more than $6 billion in AUM, with ARK/21Shares’ ARKB and Bitwise’s BITB also exceeding $1 billion in AUM. Hougan predicts that there will be some consolidation in the market, with six to eight of the ETFs expected to survive long term.

Overall, the increasing interest in spot bitcoin ETFs from various investor groups and the anticipation of larger players entering the market signal a promising future for these investment vehicles. As the industry continues to evolve and mature, the demand for bitcoin ETFs is expected to grow even further, potentially reshaping the landscape of cryptocurrency investment.