Since Bitcoin spot ETFs were approved by the US Securities and Exchange Commission (SEC), corresponding products have seen massive inflows. But one expert believes that the end of the road has not yet been reached.
• Strong inflows into Bitcoin ETFs
• Bitwise CIO sees further upside potential
• Major market players in view
On Tuesday, ten Bitcoin ETFs broke the record for combined trading volume, reaching $10 billion. Bloomberg’s ETF expert Eric Balchunas announced this on Platform X and called it a “milestone”:
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MILESTONE: the ten Bitcoin ETFs did $10b in volume today, smashing prev record set last Wed.. Volatility and volume go hand in hand with ETFs so not totally surprised. That said these are banana numbers for ETFs under 2mo old. $IBIT, $FBTC, $BITB, $ARKB all w record days. pic.twitter.com/rIdbhoYifV
– Eric Balchunas (@EricBalchunas) March 5, 2024
The latest developments are also related to the new all-time high of the original cryptocurrency Bitcoin on Tuesday and the subsequent price correction.
Big market players are still missing
Experts assume that inflows into Bitcoin ETFs – and thus trading volumes – could increase significantly further. Matt Hougan, Chief Investment Officer of Bitwise, is also one of the market’s optimists. In a recent interview with CNBC, he said the strong current demand is largely driven by retail investors, hedge funds and independent financial advisors. “I think there will be an even bigger wave in a few months when the big brokers come into the market,” he said. The largest financial institutions in the US include Bank of America, Wells Fargo, Goldman Sachs and JPMorgan, none of which have yet offered the funds to their customers.
Is Wall Street going big?
In fact, there are more and more experts who believe that the entry of major Wall Street banks will give the market additional momentum. Particularly after Morgan Stanley recently showed ambitions to offer its customers spot Bitcoin exchange-traded funds (ETFs) for its brokerage platform, the desires of market participants grew.
If large full-service brokers like Morgan Stanley participate, the ETFs are likely to benefit from further inflows, as the entry of established traditional banks would give the crypto segment a kind of legitimacy. This is an important point for many investors, especially after the dramatic collapses of FTX & Co. and the repeated allegations of fraud against large crypto companies and individual market players.
Editorial team finanzen.net
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