Bitcoin ETFs to see institutional inflows from Big Four wirehouses: Bitwise

• Bitwise's Matt Hougan says that he expects the Big Four wirehouses to begin trading Bitcoin ETFs by the end of the year.
• Hougan predicts Bitcoin ETFs will hit new record inflows by the end of 2025.
• BlackRock's Robert Mitchnick highlights that Bitcoin ETFs’ flows have shifted from retail to institutional investors.

Bitcoin ETFs are expected to witness a surge in demand from Wall Street in 2025, Bitwise CIO Matt Hougan said in a note to investors on Wednesday. Hougan stated that he expects the Big Four wirehouses — Merrill Lynch, Morgan Stanley, Wells Fargo and UBS — to be "open for business on Bitcoin ETFs by the end of the year."

Wirehouses are broker-dealer firms that offer clients a wide range of financial services. Hougan stated that the big four currently manage over $10 trillion in client assets, but do not offer exposure to US spot Bitcoin ETFs. He noted that this pattern could change in the coming months.

Hougan also predicted that Bitcoin ETFs will see a new inflow record by the end of 2025, beating 2024's milestone of $35 billion. 

"I still expect Bitcoin ETFs to set a new record for net inflows this year, despite pulling in 'just' $3.7 billion so far in 2025, compared to $35 billion in 2024," Hougan wrote.

BlackRock executive highlights shift in Bitcoin ETF ownership

This follows a rebound in demand for Bitcoin ETFs in the past two weeks as investors began reallocating funds toward digital assets. The funds pulled in $3.18 billion last week and have recorded net inflows of $763 million in the past two days, according to Farside Investors data.

This suggests a shift toward digital assets among institutional investors, with Bitcoin's 'safe haven' narrative gaining momentum again.

BlackRock's Head of Digital Assets, Robert Mitchnick, commented on the renewed interest in Bitcoin ETFs in a panel discussion at the Token 2049 event in Dubai. He highlighted that the uptick reflects a shift in "investors' engagement," indicating that strong demand is shifting from retail to institutional investors.

Mitchnick pointed out that after the launch of spot Bitcoin ETFs, retail investors initially dominated much of the flows. However, there has been a shift in dominance over time, with institutional and wealth advisory clients now holding a higher percentage.

Furthermore, Mitchnick dismissed the notion that Bitcoin is correlated with US tech stocks, calling it inconsistent with its fundamentals. He suggested widespread belief in this idea could influence Bitcoin's market behavior, resulting in a self-fulfilling prophecy.