Bitwise CIO Predicts Major Brokerages Will Adopt Bitcoin ETFs by the End of the Year, with Record Inflows in 2025
Bitwise Chief Investment Officer Matt Hougan believes that institutional investors’ access to Bitcoin exchange-traded funds (ETFs) is reaching a tipping point, predicting that the “big four” Wirehouse (Merrill Lynch, Morgan Stanley, Wells Fargo, and UBS) will “open up” to Bitcoin ETFs by the end of 2025.
The big four brokerages collectively control more than $10 trillion in client assets, and their adoption of Bitcoin ETFs could accelerate inflows into the asset class.
Hougan’s comments come at a time when traditional asset management firms have been experiencing slower-than-expected adoption since the January 2024 launch of U.S. spot Bitcoin ETFs, including Bitwise’s own BITB fund.
Morgan Stanley took a partial step last August by allowing wealth advisors to offer Bitcoin ETFs from BlackRock and Fidelity to ultra-high-net-worth clients, but broad-based access remains limited. “In general, these platforms do not yet allow their advisors to easily access Bitcoin ETFs,” Hougan wrote in a recent note.
Wirehouse Access Could Hit ETF Records in 2025
Hougan noted that despite a more modest start compared to 2024, 2025 could see record net inflows into Bitcoin ETFs. As of April 30 last year, U.S. spot Bitcoin ETFs had net inflows of $11.8 billion, closing the year at $35.4 billion.
Hougan cited increasing institutional participation as a key driver: Coinbase, Fidelity and BNY Mellon now offer custody services, while trading firms such as Jane Street and DRW are also actively engaged in the space.
Interest in Bitcoin has also spread to prominent investors and institutions such as Ray Dalio, Stan Druckenmiller, Emory University, and the Texas Teachers’ Retirement System.
“Even BlackRock recommends investing 2% in Bitcoin,” Hougan added, noting that over 80 public companies now own BTC and regulations are starting to become clearer.
*This is not investment advice.
