Wall Street’s Big Four Wirehouses Finally Cave—Bitcoin ETFs Set for Institutional Floodgates
Bitwise predicts the dam is breaking: Morgan Stanley, BofA, Wells Fargo, and UBS are prepping client allocations to spot Bitcoin ETFs after months of foot-dragging. Gold’s lunch? Officially getting eaten.
Why now? The usual—fear of missing out trumps fear of volatility. Bonus jab: Watch how fast compliance departments pivot from ’dangerous speculation’ to ’strategic exposure’ once fees start rolling in.
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.
