Bitwise, a leading crypto asset manager, has provided insights indicating that Bitcoin ETFs are set to experience significant growth in the coming months. According to Matt Hougan, the Chief Investment Officer, there is expected to be a surge in demand for spot bitcoin ETFs, driven by various market participants.
This surge in demand is anticipated to include larger U.S. wirehouses, which could further amplify the momentum. The comparison of Bitcoin ETFs to the “IPO” of BTC suggests a potential shift in the cryptocurrency landscape.
Bitwise predicts a massive surge in Bitcoin ETFs, with trading volume and inflows reaching all-time highs this week. The ten spot bitcoin ETFs have had one of the most successful launches in history. Hougan believes that demand will continue to rise.
Hougan stated in an interview with CNBC that the primary purchasers of the ETFs have been retail investors, hedge funds, and independent financial advisors. He also predicted that there will be an even bigger wave of demand in a few months when major wirehouses, such as Bank of America, Wells Fargo, Goldman Sachs, and JPMorgan, make the funds available to consumers.
Hougan referred to this upcoming surge as the “IPO moment” for Bitcoin and predicted the arrival of the next wave of institutional capital. On Wednesday, the bitcoin ETFs surpassed their daily volume record with approximately $7.7 billion in trading activity.
BlackRock’s iShares Bitcoin ETF (IBIT) saw a volume of roughly $3.3 billion, which was more than double the previous record. The fund currently has an AUM of over $9 billion, making it the top-ranked fund in terms of AUM. Fidelity’s FBTC has also amassed more than $6 billion in AUM. Bitwise’s BITB and ARK/21Shares’ BITB are the only other two funds with over $1 billion in AUM.
Hougan believes that the BTC ETFs have ushered in a “new era of price discovery.” The supply-and-demand dynamic, in relation to the quantity of Bitcoin ETFs purchased and the daily Bitcoin mined, is said to be “completely off the hook.” Hougan predicts that six to eight ETFs will endure over the long term.
When asked about the potential value of BTC, Hougan stated that it could surpass Bitwise’s initial estimate of $80,000 in 2024. He believes it could potentially reach a range of $100,000 to $200,000 or even higher.
In terms of inflows, Bitwise’s Bitcoin ETF (BITB) ranks fourth among spot Bitcoin ETFs since its inception seven weeks ago, with $1.11 billion. On February 28, the inflows reached a record high of $676.8 million.
BlackRock is also introducing a new BTC BDR (Brazilian Depositary Receipts) ETF, making its iShares spot Bitcoin exchange-traded fund accessible in Brazil. Trading will begin on March 1, and the Brazilian financial market infrastructure provider B3 will collaborate with BlackRock to offer the new product.
The ETF will incur an administrative fee of 0.25%, which will be compensated by a one-year exemption on the initial $5 billion of assets under management. However, there is a complete tax on BDRs. Retail sales approval is still pending for BlackRock Brazil, and investors must have accumulated a minimum of one million reals ($201,000) in market capital before investing in the fund.
