Bitwise says Bitcoin ETFs will spark ‘a bigger wave’ of institutional funding.

adminMarch 2, 2024

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Spot Bitcoin exchange-traded funds (ETFs) are set to receive a “bigger wave” of investment inflows this year that could push the price of BTC to $200,000, said Matt Hougan, chief investment officer at Bitwise.

Hougan told CNBC in a February 29 interview that the first wave of Bitcoin ETF interest primarily came from retail, hedge funds and independent financial advisors.

The next wave will be driven by institutional players, he said, noting that institutions from Morgan Stanley to Bank of America’s Merrill Lynch and Wells Fargo are now aiming to offer BTC ETF products to a large institutional customer base.

Bank of America’s Merrill division and Wells Fargo’s brokerage division are providing access to ETFs that invest directly in Bitcoin https://t.co/HqGAkJB98f
— Bloomberg Cryptocurrency (@crypto) February 29, 2024

Bitcoin ETF sparks ‘new era of price discovery’

Hougan added that there is currently too much demand for Bitcoin and not enough supply. With institutional investors finally gaining easy access to Bitcoin investments through the giant Wall Street bank’s investment platforms, Hougan says the BTC ETF is sparking a “new era of price discovery” for the king of cryptocurrencies.

Morgan Stanley is ready to make an offer. #Bitcoin ETFs to customers pic.twitter.com/2gaXGRvmNl
— Quinten | 048.eth (@QuintenFrancois) February 29, 2024

Hougan said the next wave of institutional buying could push the price of Bitcoin “significantly higher.” He said Bitwise could reach $100,000 to $200,000 or more, surpassing its initial 2024 forecast of $80,000.