Hougan Believes All Four Major Wirehouses Will Allow Bitcoin ETF Access by Year's End, Setting the Stage for Record Inflows

At a recent wirehouse conference, Bitwise CIO Matt Hougan's keynote signaled a major shift.

At a recent wirehouse conference, Bitwise CIO Matt Hougan's keynote touched on a significant shift: all four major wirehouses will be opening up access to Bitcoin ETF to their clients by year's end, according to Hougan.

This long-anticipated move could set the stage for record-setting inflows into Bitcoin ETFs, further boosting the cryptocurrency's momentum.

After his talk, Hougan was approached by a conference attendee who had waited patiently in line to ask a single question: "What would Bitcoin be worth if everyone stopped believing in it?" It's a fear that hangs over many investors. Bitcoin is digital, intangible, and lacks the physical "backstop" of an asset like gold. If sentiment fails, what would be left to salvage?

Hougan acknowledged the concern, noting that he's personally wrestled with it at length. But then, he flipped the question: "What would it take for you to believe that Bitcoin is here to stay?" For investors still on the fence, that question can be more clarifying. And the answers have changed drastically in recent years.

Here is a conversation by Andrew Hohns and Matt Hougan of Bitwise Invest on Institutional Bitcoin adoption:

Most institutions will have a basis in Bitcoin above $1 million

Andrew Hohns and @Matt_Hougan (of @BitwiseInvest ) unwind the institutional Bitcoin catalysts and trends during their conversation with Jeff Crane of Bitcoin Events. Establishing a narrative in…

So, Bitcoin's journey to greater institutional adoption is already well underway.

Coinbase and Fidelity are trusted by institutions for cryptocurrency custody, while BNY Mellon is quickly catching up to provide similar services. Top-tier trading partners include Jane Street and Cumberland, and nine of the world’s ten largest hedge funds now have an allocation in Bitcoin.

University endowments, like Emory's, state pension funds, like Texas Teachers, and recognized names, including Ray Dalio, have integrated Bitcoin into their investment strategies.

Public companies, such as Tesla and MicroStrategy, are investing in Bitcoin and holding it on their balance sheets, and institutions now have convenient access to Bitcoin through innovative products like ETFs. Even industry giants like BlackRock are recommending a 2% Bitcoin allocation in investor portfolios.

On the regulatory front, the U.S. is making progress with legislation pending for market structure and reporting. In a surprising move, the government is reportedly planning to build a strategic Bitcoin reserve.

For Hougan's skeptic, that list was enough. After a beat, he nodded slowly and said, "I'm going to buy Bitcoin."

Don't Wait For The Crowd, Saylor Says

While some investors might be tempted to wait until Wall Street has fully opened the door and begun actively marketing Bitcoin to the masses, others, like MicroStrategy Chair Michael Saylor, are urging action now.

Saylor, a vocal cryptocurrency advocate, recently cautioned against waiting for institutions to make the first move. "By the time the pitch is being made to every client, the price will already reflect it," Saylor warned.

When the banks bless Bitcoin and the experts agree it’s a good idea, everyone will want to buy it, no one will need to sell it, and you won’t be able to afford it.

The rise of spot Bitcoin ETFs has already changed the investing landscape. BlackRock's and Fidelity's Bitcoin ETFs, launched earlier this year, have already drawn in billions from investors. But broader institutional marketing efforts could unlock an even greater wave of capital.