Bitwise CIO expects big four wirehouses to be ‘open for business’ on Bitcoin ETFs by the end of the year, predicts record inflows in 2025

Bitwise Chief Investment Officer Matt Hougan said the big four wirehouses — Merrill Lynch, Morgan Stanley, Wells Fargo and UBS — which control over $10 trillion in client assets, will be "open for business" on Bitcoin exchange-traded funds by the end of the year.Wirehouses are large, full-service brokerage firms with national networks of financial advisors offering investment and wealth management services.Take-up has been slower than anticipated by most analysts following the launch of spot Bitcoin ETFs in the U.S. in January 2024, including Bitwise's BITB fund. Hougan initially thought wirehouse support could have arrived as early as the first half of 2024, mirroring comments from Bloomberg Senior ETF Analyst Eric Balchunas.Major wirehouses supporting the ETFs could increase their availability by around four times, Hougan said at the time. "It's like putting a product on the shelf of Whole Foods or a big food store. Just that kind of exposure and availability is only going to help," Balchunas added.Morgan Stanley did start allowing its wealth advisors to pitch BlackRock and Fidelity's Bitcoin ETFs to some clients last August, but this was limited to those with a net worth of at least $1.5 million in taxable brokerage accounts only. However, "by and large, these platforms have not yet allowed their advisors to easily access Bitcoin ETFs," but "that's changing fast," Hougan wrote in a note to clients on Wednesday. Wirehouse adoption is one of the reasons Hougan still expects record net inflows into the ETFs this year despite a slower start compared to the same period in 2024. By April 30 last year, the combined U.S. spot Bitcoin ETFs had attracted $11.8 billion in cumulative net inflows, according to data compiled by The Block, going on to register $35.4 billion for the year.In contrast, bitcoin's price slump post Inauguration Day all-time high has seen the ETFs attract just over $4 billion year-to-date, so they've got some catching up to do to beat their first year in business.'What would it take?'The Bitwise CIO's latest reflections follow a closing speech he gave on day one of the National Wirehouse Conference earlier this month. While wirehouse adoption could clear another potential barrier for some participants, getting skeptics over the line remains a challenge for advocates like Hougan.Recalling a common question from one of the attendees, who said he understood the case for bitcoin but couldn't get over one concern: what if people stopped believing in it? "What would it be worth if the music stopped?" he asked.The honest answer is nothing, Hougan acknowledged — bitcoin's value depends entirely on belief and demand. Hougan argued this is also true of gold and other assets, but the enquirer maintained it wasn't the same. "What would it take?" Hougan replied, asking what would he have to see to believe that bitcoin is here to stay.For some people, the answer to that question may mean they never buy bitcoin, Hougan noted. However, referencing many of the prior blockers, he explained that institutional involvement in bitcoin has accelerated across the board.Today, major firms like Coinbase, Fidelity and soon BNY Mellon provide custody, while trading giants like Jane Street and Cumberland/DRW are also on board. Nine of the world's ten largest hedge funds now hold bitcoin, along with major institutions like Emory University, the Teacher Retirement System of Texas and investors like Ray Dalio and Stan Druckenmiller. BlackRock and Invesco are in. Over 80 public companies, including Strategy, Block and Tesla, hold bitcoin, and ETFs now offer easy access. BlackRock even recommends a 2% allocation, regulatory clarity is advancing in Congress, and the U.S. is building a Strategic Bitcoin Reserve, he said.Whatever it would take, Hougan suggested writing it down, as these ideas too once seemed far-fetched until they weren't. "My new friend thought about it for a moment, took a deep breath, and said, 'I'm going to buy bitcoin.' I think a lot of people are going to come to the same conclusion this year," Hougan concluded.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.