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Wall Street Giants Embrace Bitcoin ETFs by Year-End, Says Bitwise CIO

Bitwise CIO Matt Hougan predicts Wells Fargo, Morgan Stanley, Merrill Lynch, and UBS will offer Bitcoin ETF services by year-end 2025, signaling a major leap in institutional crypto adoption.

In a bold prediction that signals a major milestone for the cryptocurrency market, Matt Hougan, Chief Investment Officer of Bitwise Asset Management, has stated that several of Wall Street’s most prominent financial institutions—Wells Fargo, Morgan Stanley, Merrill Lynch, and UBS—are poised to offer Bitcoin Exchange-Traded Fund (ETF) services by the end of 2025. If realized, this development would mark one of the most significant waves of institutional adoption in crypto's history.

Table of Contents

Wall Street’s Entry: The Power of the Wirehouses

Collectively managing over $10 trillion in assets, these four financial titans—often referred to as "wirehouses"—have long represented the core of traditional wealth management in the United States. Hougan believes that each will integrate Bitcoin ETFs into their service offerings for clients before the year concludes.

“I suspect all four wirehouses will be open for business on Bitcoin ETFs by the end of the year,” Hougan wrote in a recent investor note. “It’s one of the reasons I still expect Bitcoin ETFs to set a new record for net inflows this year.”

The statement underscores a growing shift among legacy institutions that were once skeptical of digital assets but are now adapting to meet rising client demand and evolving market conditions.

ETF Inflows: A Quiet Start with Bullish Expectations

While 2025 has so far seen a modest $3.7 billion in net inflows into Bitcoin ETFs—far below 2024's $35 billion—Hougan remains optimistic that momentum will pick up dramatically. He points to the pending participation of the wirehouses as a key catalyst for future capital inflows.

The implication is clear: once these institutions open access, retail and high-net-worth clients across the country could dramatically accelerate ETF adoption, pushing inflows to new highs.

From Fringe to Mainstream: Bitcoin’s Evolution

Hougan emphasized that developments once considered implausible are now materializing with increasing frequency. Institutional custody solutions, favorable regulatory frameworks, and the embrace of Bitcoin by leading asset managers have all contributed to a changing perception of crypto within mainstream finance.

“If you go back even a few years, what we thought it would take—like the U.S. government owning bitcoin or the largest asset manager in the world embracing the asset—seemed far-fetched. But here we are,” Hougan observed.

This transformation suggests that more institutional investors, who may have remained on the sidelines due to regulatory or custodial concerns, could now see Bitcoin as a viable, even essential, portfolio asset.

Strategic Implications for Investors and the Market

The onboarding of Bitcoin ETF services by major Wall Street firms has several far-reaching implications:

  • Broader Market Access: Millions of clients will gain seamless exposure to Bitcoin without the need for self-custody or navigating crypto exchanges.

  • Legitimization of the Asset Class: Endorsement by trusted financial advisors may help dispel lingering doubts among conservative investors.

  • Liquidity and Price Impact: A surge in institutional buying through ETF vehicles could positively impact Bitcoin’s price and liquidity.

At the time of Hougan’s statement, Bitcoin was trading at $93,869, having seen a slight 1.1% drop over the previous 24 hours. Still, the long-term trajectory appears bullish if mainstream adoption unfolds as anticipated.

Conclusion

With the expected entry of Wells Fargo, Morgan Stanley, Merrill Lynch, and UBS into the Bitcoin ETF space, 2025 may go down as a historic turning point in the convergence of traditional finance and digital assets. As access widens and institutional walls crumble, Bitcoin may solidify its place not just as a speculative asset, but as a core holding in modern investment portfolios.

FAQs

What is a Bitcoin ETF?

A Bitcoin ETF (Exchange-Traded Fund) allows investors to gain exposure to Bitcoin’s price movements through a regulated investment vehicle without directly holding the cryptocurrency.

Which major banks are expected to offer Bitcoin ETF services by 2025?

According to Bitwise CIO Matt Hougan, Wells Fargo, Morgan Stanley, Merrill Lynch, and UBS are all expected to open Bitcoin ETF services by the end of 2025.

Why is this development significant?

These institutions collectively manage over $10 trillion in assets. Their entry into the Bitcoin ETF market would represent a massive boost in legitimacy, accessibility, and potential investment inflows for the cryptocurrency.

How much capital has flowed into Bitcoin ETFs in 2025 so far?

As of now, Bitcoin ETFs have attracted $3.7 billion in net inflows in 2025, a slower pace compared to $35 billion in 2024, but expected to rise sharply with Wall Street adoption.

What impact could this have on Bitcoin’s price?

Increased institutional participation could drive demand and liquidity for Bitcoin, potentially influencing its price positively over time.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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