In the latest episode of Coinstory podcast Hosted by Bloomberg Intelligence’s research analyst, Nathali Brunel, James Safart, reported that the next significant bounce of Bitcoin Exchange-Treded Fund (ETF) adoption is likely to come from leading wirehouses such as UBS, Morgan Stanley and Merrill Lynch. These large institutions, usually managing the portfolio of high-net-forth individuals, have not yet roughly recommended bitcoin ETFs-but Safarte believes that when they do, it can increase a significant wave in the market.
See bitcoin ETF record-breaking inflow
Discussing the unprecedented success of Spot ETFs, since he started trade in 2024, Safart compared the Gold ETF launched before decades. In his words: “Its favorite chart is if you see gold ETF asset growth over time … Bitcoin ETF blows up everything that you can probably see. Even if you accommodate inflation-term, it does not matter. ,
He explained how the most widely trading spot bitcoin ETF-Blackcock’s iBit- contacted the assets size of the old gold ETF, underlined how soon it collects investor funds. At its January summit of $ 122–123 billion in assets, Bitcoin ETFs were around $ 130 billion organized by the early-Mover Gold ETF launched in ETF 2004. “IBIT is the fastest ETF $ 50 billion as a whole category,” Safart said that the fund emphasized this. “The previous record was more than a thousand days.”
Although BTC’s power performance strength helped to increase the total assets under management, Safart stressed that the capital flow itself was striking. He cited the summit with a “Access of more than $ 40 billion” in less than a year, in total ETF property is still exceeding $ 100 billion.
While many types of spot bitcoin ETFs are present, many asset managers have launched their own funds, according to SAPT, IBIT has “actually participated in terms of both property and liquidity”. He explained in detail that Fidelity (FBTC), Grascale (GBTC), Ark Invest, BitWise, and Vaneck funds are all beneficial, but no one comes close to matching the depth of the daily trading volume and market of Ibit.
Citing 13F filing – some institutional investors should file with American Securities and Exchange Commission – Safurt said that by the end of 2024, about 25% of ETF holdings can be directly attributed to the institutions that meet the filing criteria. He further stated that the hedge funds appear to be the largest identifiable group among those filers: “The biggest holder, the irony is that the hedge funds are … $ 10 plus billion value of these things.”
According to SEFERT, a significant part of hedge funds comes from a “base trade”, a near-arbitration strategy in which managers buy spot bitcoin ETFs, as well as reduce the futures market. Because bitcoin futures trading on the Chicago Mercantile Exchange (CME) can take a premium, traders have to search for spread when the futures contract settles.
He described this approach as a “delta neutral”, meaning that it does not push the price of bitcoin more or less: “It is originally risky-free … you are selling futures contracts further because there is a frequent premium and offset with ETFs. So it should not actually affect the price on some large scale.”
Next big catalyst
According to SEFERT, wirehouses and other top level money managers control trillions in assets, and many of them have yet offered or recommended bitcoin ETFs. The current protocol on some of these firms allow customers to request Bitcoin ETF procurement, but does not allow advisors to continuously recommend them. “If you say,” You are my consultant and I want you to put 2% in bitcoin, “in most cases they can do so. But they are not allowed to come and say, ‘I advise it,” Safart mentioned, “Safart mentioned, saying how many major brokerage bitcoin-focused investment is classified.
He emphasized that this ban is likely to decrease over time. As the largest wirehouses and brokerage approve more widely or officially recommend BTC ETF posts – such as “2% or 5% satellite part” of a specific portfolio – Bitcoin ETF adoption may rise to new levels.
Safart said: “The next big wave of adoption is […] Probably buying corporations [Bitcoin]But for the ETF side of things, these are actually those wirehouses and advisors; They control trillions of dollars, such as those who actually manage the money of rich people. ,
He controlled the wirehouse “Sentimilians, billionaires’ money, you name it – and they potentially are the next wave of adoption for these bitcoin ETFs,” The first year of ETF was absolutely incredible “adding ETFs. We were very fast in Bloomberg; We were much more rapid than any other traditional financial research branch. Not very fast as a bull, but he also blew us out of the water which he has done. “
Ultimately, Bloomberg Intelligence Analyst believes that once the US’s largest wirehouse is equally supported and Bitcoin recommends ETFs – but only allows them at customer request – the sector can witness the “next big wave” of adoption. With billions of dollars flowing from institutional and high-net-global portfolio, this wave can be well assumed the record-breaking launch of Spot bitcoin ETF in 2024.
At the press time, BTC traded at $ 81,901.
Image made with Dall.E, chart from traudingview.com
Editorial process Focus on giving full research, accurate and fair content for bitcoinists. We maintain strict sourcing standards, and each page undergoes hardworking review by our team of top technology experts and experienced editors. This process ensures the integrity, relevance and value of our content for our readers.
