The new American Bitcoin (BTC) spot exchange-traded funds (ETFs) or exchange-traded funds are performing even better than expected.
They initially did not show the desired price effect and underperformed until the end of January. However, in February they rose sharply again and the price finally began to rise sharply.
Still, we could see an even bigger flood of capital into ETFs in the coming months, says one asset manager.
An even bigger wave of capital is coming to Bitcoin ETFs
According to Bitwise CIO Matt Hougan, an “even bigger wave” of institutional capital will flow into the new Bitcoin ETFs. According to Hougan, this will happen when the “major securities firms” offer the Bitcoin ETFs to their clients.
“I think there will be an even bigger wave in a few months as we see the big securities firms take action,” Hougan said in a Feb. 29 interview with CNBC.
Securities firms or international brokerage firms are institutions that deal with trading securities such as stocks and bonds and often also provide other financial services such as asset management and financial advice.
Coincidentally, today you read on Crypto Insiders that Morgan Stanley, one of the largest banks and securities firms, is considering offering Bitcoin ETFs to its clients.
According to Bloomberg, two other major securities firms, Merrill Lynch and Bank of America’s Wells Fargo, have already started offering the ETFs.
ETFs are Bitcoin’s “IPO moment” and could drive the price to $200,000
Hougan calls the launch of the ETFs “Bitcoin’s IPO moment.” A initial public offering (IPO) is a method by which many large companies go public and raise new capital.
According to Hougan, Bitcoin ETFs are driving price increases because there is too much demand and too little supply.
Hougan said that earlier this year, Bitwise expected Bitcoin to enter a new market in 2024 All-time high will rise above $80,000. Due to the strong performance of the ETFs, Hougan now believes that Bitcoin price could rise above $100,000 or even $200,000 this year.
Bitwise also launched a Bitcoin ETF in January. More than $1 billion has already flowed into Bitwise’s BITB. Despite its strong performance, it lags far behind rivals BlackRock and Fidelity.
Overall, Bitcoin ETFs had a strong week, but it was disappointing yesterday due to a large outflow from the Grayscale ETF.
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