Bitwise Expects a Massive Surge in bitcoin ETFs:
According to the insights from Bitwise, a leading crypto asset manager, there is a strong likelihood that bitcoin Exchange Traded Funds (ETFs) will experience substantial growth in the upcoming months. Matt Hougan, the Chief Investment Officer at Bitwise, anticipates a surge in demand for spot bitcoin ETFs, driven by various market participants.
This surge is expected to include participation from larger U.S. wirehouses, which could further amplify the momentum. Currently, none of the major U.S. wirehouses such as Bank of America, Wells Fargo, Goldman Sachs, and JPMorgan have made these funds available to consumers yet. Hougan predicts the arrival of a significant wave of institutional capital, referring to bitcoin ETFs as the “IPO moment” for bitcoin.
Record-Breaking Week for bitcoin ETFs
This week, trading volume and inflows for the ten spot bitcoin ETFs have reached all-time highs. The primary purchasers of these ETFs have been retail investors, hedge funds, and independent financial advisors. Hougan anticipates that demand will continue to rise in the coming months as wirehouses come on board.
On Wednesday, bitcoin ETFs surpassed their daily volume record with approximately $7.7 billion in trading activity, up from the previous day’s record of $4.7 billion. Among these funds, BlackRock’s iShares bitcoin ETF (IBIT) had the largest volume of approximately $3.3 billion and currently maintains an Assets Under Management (AUM) of over $9 billion, placing it at the top of the AUM rankings for new funds.
bitcoin ETFs: A New Era of Price Discovery
According to Hougan, the bitcoin ETFs have inaugurated a “new era of price discovery.” The supply-and-demand dynamic regarding the quantity of bitcoin ETFs purchased versus the daily bitcoin mined and the upcoming halving event is “completely off the hook.”
There will be some consolidation, predicted Hougan. He projects that six to eight ETFs will endure over the long term. When asked about its potential value, Hougan stated that bitcoin could significantly surpass Bitwise’s initial estimate of $80,000 in 2024. It could potentially ascend to a range of $100,000 to $200,000 or even more.
Bitwise bitcoin ETF (BITB) inflows rank fourth among spot bitcoin ETFs since their inception seven weeks ago, with a total of $1.11 billion. February 28 saw inflows of $676.8 million, which is a record high for the ecosystem.
BlackRock’s Brazilian bitcoin ETF
With the introduction of a new btc BDR (Brazilian Depositary Receipts) ETF, BlackRock’s iShares spot bitcoin exchange-traded fund will now be accessible in Brazil. Trading for this new product will begin on March 1, announced BlackRock on February 29.
The Brazilian financial market infrastructure provider B3 will collaborate with BlackRock to offer the new product. The launch of the iShares bitcoin Trust ETF BDR, IBIT39, advances the innovation of ETFs and allows access to bitcoin for investors through a Website security that can be incorporated into their portfolios.
BDRs of foreign ETFs are Brazilian-issued securities that are collateralized by shares of foreign ETFs. Thus, the Brazilian ETF is essentially identical to the bitcoin ETF that BlackRock introduced in January in the United States. Its performance will be comparable to that of the U.S. ETF, with an administrative fee of 0.25%. However, there is a complete tax on BDRs, and investors must have accumulated a minimum of one million reals ($201,000) in market capital before investing. Retail sales approval is still pending for BlackRock Brazil.
