In a recent update, Bitwise revealed that the demand for Bitcoin exchange-traded funds (ETFs) is gaining momentum, with influential market players poised to enter the space.

Bitwise’s Chief Investment Officer, Matt Hougan, shared insights on social media, distinguishing current Bitcoin ETF investors from those anticipated to join the market soon. Prospective investors include “wirehouse advisors,” “corporations,” and “institutional consultants.”

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• Major corporations and wirehouses are poised to enter the Bitcoin ETF market, signaling a potential surge in adoption.
• MicroStrategy remains the world’s largest corporate owner of BTC, holding 193,000 coins as of March 2024.
• While retail investors have driven initial demand, registered investment advisors, family offices, hedge funds, and asset managers are increasingly joining the Bitcoin ETF trend.

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Surging Interest in Bitcoin ETFs Signals Corporate Adoption On the Horizon: Bitwise

Bitcoin ETFs have attracted retail investors, registered investment advisors, family offices, hedge funds, venture capital funds, and asset managers. Hougan envisions a significant upcoming wave of interest from wirehouses, corporations, and institutional investors.

Wirehouses, such as Morgan Stanley and Merrill Lynch, initially hesitated but have recently allowed clients to invest in Bitcoin ETFs offered by BlackRock, Fidelity, and others, citing successful trading efficiency.

Hougan, in a recent CNBC interview, noted that the initial ETF demand was led by retail buyers, with registered investment advisors, family offices, hedge funds, venture capital funds, and asset managers also participating. However, major wirehouses are yet to embrace these ETFs fully.

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… but this has been Bitcoin’s IPO moment.”

Regarding corporate involvement, MicroStrategy retains its position as BTC’s world’s largest corporate owner, holding 193,000 coins as of March 2024. The company recently announced a $600 million convertible note offering to raise additional funds for Bitcoin purchases.

Bitwise anticipates significant buyers for the ETFs, including endowments, pension funds, sovereigns, and supernationals. El Salvador is the only country that has publicly confirmed the addition of BTC to its Treasury.

Bloomberg ETF analyst Eric Balchunas highlighted the mounting pressure on wirehouse platforms to introduce the ETF to their clients, noting, “They like to see the track record and get paid off, but with grassroots demand like this, they gonna have to expedite.”

As interest in Bitcoin ETFs continues to surge, readers are invited to sign up for newsletters to receive insightful and firsthand updates on the evolving landscape of cryptocurrency. Stay informed about the latest developments in the rapidly changing world of digital assets.