Bitcoin (BTC), the premier cryptocurrency, has recently made headlines by soaring past the $72,000 mark, drawing attention from all corners of the investment world. Amidst this bullish wave, Spot Bitcoin ETFs have seen a significant uptick in interest, with Bitwise's Chief Information Officer, Matt Hogan, revealing over $500 million in inflows on a single Monday.

Hogan, who oversees the Bitwise Bitcoin ETF (BITB), discussed the increasing institutional interest in Bitcoin ETFs, forecasting potential involvement from giants like Morgan Stanley and Wells Fargo.

In a recent interview with CNBC, Hogan emphasized the growing appeal of Bitcoin ETFs among various investor demographics. Initially favored by retail investors, these ETFs are now attracting hedge funds and other institutional investors, according to Hogan. He particularly highlighted the anticipated 'unlocking' of major wealth management platforms, which would mark a significant milestone for the ETF sector.

Hogan also noted the entrance of corporates into the Bitcoin ETF space, suggesting a broadening base of support for digital asset investments.

The conversation also touched upon the current state of wirehouses in relation to Bitcoin ETFs. Hogan explained that these financial institutions currently operate on an unsolicited basis, only facilitating Bitcoin ETF investments upon client request.

However, he expressed optimism that this would soon transition to solicited services, thereby expanding Bitcoin fund exposure. This move is expected to trigger a substantial influx of investments, further propelling the growth of these ETFs.

The role of Bitcoin ETFs in the cryptocurrency's recent price rally was also discussed. Hogan described Bitcoin as being in a 'price discovery phase,' attributing much of this dynamic to the increased exposure via ETFs.

The shift towards institutional investment in Bitcoin, facilitated by ETFs, has been a game-changer, bringing a larger segment of the investment community into the crypto fold.

On March 11, 2024, the U.S. Spot Bitcoin ETFs recorded an unprecedented level of institutional interest, with Farside UK reporting about $505.6 million in inflows. This surge was led by industry giants BlackRock and Fidelity, with their products, iShares Bitcoin Trust (IBIT) and FBTC, attracting over $775 million combined.

Despite the challenges faced by Grayscale's Bitcoin Trust (GBTC), the overall market sentiment remains bullish, underpinned by strong institutional support and positive market momentum.