Bitwise Predicts Imminent Access to Bitcoin ETFs for Major Investment Platforms

In the coming weeks, a major investment platform may announce support for a spot Bitcoin ETF, according to Bitwise CIO Matt Hougan, reports The Block.

Hougan believes that within a few months, all competitors of the pioneer will follow suit.

He noted that the retail market can be divided into two segments: independent investment advisors (RIA) and large national platforms. The former could immediately diversify client portfolios, while the latter will only have this option after conducting due diligence.

The expert estimates that completing this process will quadruple the potential demand for the product.

A Unified Scenario

Hougan’s comments align with the views of Bloomberg analyst Eric Balchunas, who identified the addition of spot Bitcoin ETFs by major platforms as one of two “powerful catalysts” for demand by year-end. The second catalyst, he mentioned, is the approval of options based on exchange-traded funds.

Balchunas predicted that platforms will add support for the product in the coming months. He noted that among major institutions, Raymond James and LPL have shown interest in the new ETFs, with others likely to follow.

CoinShares’ Head of Research, James Butterfill, expressed a similar view. According to him, so far only Carsen Group has permitted trading of spot Bitcoin ETFs. The introduction of this option by other players, considering the upcoming halving, will lead to a demand shock, he indicated.

In March, it was revealed that Bank of America and Wells Fargo would provide access to the product upon request.

Previously, media reported that Morgan Stanley had initiated due diligence regarding the addition of spot Bitcoin ETFs to its brokerage platform.

BlackRock Managing Director Tony Ashraf and Grayscale Investments CEO Michael Sonnenshein stated that these instruments satisfy pent-up demand for the asset.

The former cited the macroeconomic environment, changing demographics, improved regulatory landscape, and industry maturation as drivers for purchasing exchange-traded funds.

And What About Ethereum?

Hougan also addressed the potential approval of spot exchange-traded funds based on Ethereum. He believes the product could attract more assets if launched later than the current target of May 23, which he described as “not ideal.”

The Bitwise CIO explained his position by highlighting the need to prepare for “digesting” tools based on digital gold before switching to alternatives. An optimal timeframe would be eight to nine months after the launch of BTC-ETF, he added.

“Wall Street/TradFi has only just begun to absorb this giant thing called Bitcoin,” concluded Hougan.

Earlier, analysts at Standard Chartered estimated that the total inflow into ETH-ETF over the next 12 months will reach $45 billion. In less than ten weeks, BTC-ETF received $12 billion.