The remarks made by Bitwise’s CIO Matt Hougan coincide with reports that Wells Fargo and Merrill Lynch of Bank of America have begun to provide spot Bitcoin ETFs to its wealthy clientele.

As soon as the “major wirehouses” start offering Bitcoin (BTC) ETF trading, spot Bitcoin exchange-traded funds (ETF) may see an “even bigger wave” of institutional capital, according to Bitwise.

In an interview with CNBC on February 29, Bitwise’s CIO Matt Hougan stated, “I think there’s an even bigger wave coming in a few months as we start to see the major wirehouses turn on.” He also mentioned that the initial wave of interest in Bitcoin ETFs mainly had come from retail, hedge funds, and independent financial advisors.

Hougan described the ETFs as Bitcoin’s “IPO moment” and predicted the arrival of the next wave of institutional funding.

“With #Bitcoin right now … there is too much demand and not enough supply.” – Bitwise CIO Matt Hougan pic.twitter.com/1B0joUQ1Pp

Saylor, Michael ♡️ (@saylor) February 29, 2024

Remarkably, a Bloomberg article from February 29 claims that two of the biggest wirehouses, Bank of America’s Merrill Lynch and Wells Fargo, have begun to offer spot Bitcoin ETFs to their wealthy clientele.

However, Bloomberg reported, citing people familiar with the situation, that it is now only accessible to customers who request the products.

It is also said that Morgan Stanley is thinking of offering a spot Bitcoin ETF on its brokerage platform.

A “new era of price discovery” has been sparked, according to Hougan, by the Bitcoin ETFs.

Regarding the quantity of Bitcoin ETFs bought to the amount of Bitcoin created daily and the impending halving event, Hougan stated that the supply-demand dynamic is simply “off the hook.”

“There is insufficient supply and excessive demand.”

According to Hougan, the price of Bitcoin may rise “substantially” in response to the next wave of institutional interest.

When asked how high, Hougan suggested that Bitcoin might hit anywhere from $100,000 to $200,000 or even higher, smashing Bitwise’s initial 2024 projection of $80,000 out of the park.

According to BitMEX Research, since the launch of the spot Bitcoin ETFs seven weeks ago, the Bitwise Bitcoin ETF (BITB) has seen the fourth-largest inflow of $1.11 billion.

On February 28, inflows hit a new all-time high of $676.8 million for the ecosystem.

Leading the way with $7.1 billion and $4.7 billion inflows, respectively, are BlackRock’s IBIT and Fidelity’s FBTC.

Conclusion

The emergence of Bitcoin ETFs, especially with Bitwise’s projected surge, is a clear indication of the maturation and growing acceptance of cryptocurrencies within the financial sector. Preparing for and navigating through this wave responsibly will be pivotal for individual and institutional investors alike. Stay informed, diversify your portfolio, carefully choose your investment platforms, and manage your risks. These proactive steps will not only protect your investments but also position you to take advantage of the unprecedented opportunities that the cryptocurrency market, bolstered by Bitcoin ETFs, might soon offer.