Étienne Girard
Major U.S. brokerage firms — including Merrill Lynch, Morgan Stanley, Wells Fargo, and UBS — are expected to offer full access to Bitcoin ETFs by the end of 2025, according to Bitwise Chief Investment Officer Matt Hougan.
These so-called “wirehouses” control more than $10 trillion in client assets, and their involvement could significantly scale up demand for spot Bitcoin exchange-traded funds (ETFs), which have had a slower start than analysts originally forecasted.
Bitcoin ETFs Still Face Hurdles Despite Early 2024 Launch
Spot Bitcoin ETFs went live in the U.S. in January 2024, including Bitwise’s own BITB fund, but early adoption among institutional platforms was limited. Hougan initially expected wirehouses to support these ETFs within the first half of the year — a sentiment echoed by Bloomberg ETF expert Eric Balchunas.
“It’s like placing a new product on the shelves of a major supermarket — the exposure alone can drive demand,” said Balchunas.
Morgan Stanley Leads Early Adoption, but Access Remains Limited
While Morgan Stanley has allowed a select group of wealthy clients (with at least $1.5 million in taxable accounts) to invest in BlackRock and Fidelity’s Bitcoin ETFs, most wirehouse platforms still restrict access for their advisors.
However, Hougan emphasized in a recent note to clients that this is rapidly changing, and broader approval may arrive before year-end.
Wirehouse Integration Could Drive Record-Breaking ETF Inflows
Despite the slow rollout, Hougan remains bullish on the long-term potential of Bitcoin ETFs. He believes the addition of wirehouses could help surpass 2024’s strong net inflow numbers. By April 30, 2024, spot Bitcoin ETFs had brought in $11.8 billion in cumulative inflows — reaching $35.4 billion by year-end.
So far in 2025, with Bitcoin prices cooling off since January’s all-time high, ETFs have only attracted about $4 billion, meaning they’ll need a major push in the months ahead to match last year’s record.
Addressing Investor Skepticism: “What If the Music Stops?”
At the recent National Wirehouse Conference, Hougan shared a revealing moment: one advisor asked, “What if people stop believing in Bitcoin? What would it be worth then?” Hougan’s candid response was: “Nothing.” Like gold or art, Bitcoin’s value is driven by collective belief and demand.
That doubt, he said, is precisely what keeps many investors on the sidelines — but it’s also why they need to define what would change their mind.
The Institutional Case for Bitcoin Is Stronger Than Ever
Bitcoin’s mainstream adoption has already exceeded what many thought was possible, Hougan argued. Today:
-
Coinbase, Fidelity, and soon BNY Mellon offer crypto custody
-
Trading giants like Jane Street and DRW/Cumberland are actively participating
-
Nine of the ten largest global hedge funds now hold Bitcoin
-
Institutional investors include Emory University, the Texas Teachers Retirement System, and legendary names like Ray Dalio and Stan Druckenmiller
-
Over 80 publicly traded companies, including Tesla and Block, have added Bitcoin to their balance sheets
-
BlackRock recommends a 2% portfolio allocation
-
Regulatory progress is unfolding in Congress
-
The U.S. is even preparing a Strategic Bitcoin Reserve
A New Era of Adoption Is Approaching
Hougan closed by urging skeptics to write down their “deal-breakers” — the things they need to see before accepting Bitcoin’s legitimacy. “At one point, everything I mentioned sounded impossible,” he said.
“One advisor paused, took a breath, and said, ‘I’m going to buy Bitcoin.’ I believe many more will follow before the year is over.”
