Institutional demand and wealth manager approvals could push Bitcoin ETF inflows past $36 billion in 2025
Bitwise Asset Management expects U.S. spot Bitcoin exchange-traded funds (ETFs) to record their largest-ever quarterly inflows in the final quarter of 2025, fueled by a surge in institutional adoption and a growing focus on the so-called “debasement trade.”
According to Bitwise Chief Investment Officer Matt Hougan, recent approval trends among major U.S. wealth managers and renewed optimism around Bitcoin’s price could push inflows beyond the 2024 record of $36 billion before year-end.
So far, Bitcoin ETFs have accumulated about $25.9 billion in 2025, with $3.5 billion added in just the first week of October.
Wealth Managers Join the Bitcoin Allocation Trend
Hougan pointed to a series of institutional developments driving this momentum. Morgan Stanley recently introduced formal crypto exposure limits for client portfolios, recommending up to 4% allocations for higher-risk investors. Other major firms — Wells Fargo, UBS, and Merrill Lynch — are also moving to allow Bitcoin ETF investments within advisory networks.
“These approvals represent the start of a structural shift,” Hougan noted in his client memo, adding that pent-up demand from advisors could fuel another wave of inflows as firms adjust portfolio strategies heading into year-end.
Bitcoin and Gold Lead the ‘Debasement Trade’
The latest data shows that Bitcoin and gold are the year’s best-performing major assets, with both benefiting from what Wall Street calls the “debasement trade” — investing in scarce assets as fiat currencies lose value.
With the U.S. money supply up 44% since 2020, and major institutions highlighting inflationary risks, investors are increasingly turning to Bitcoin as digital gold.
Bitcoin’s price recently surged past $125,000, setting a new all-time high before correcting slightly to around $122,700.
Historically, double-digit quarterly returns in Bitcoin have coincided with multi-billion-dollar ETF inflows, a pattern Bitwise expects to repeat this quarter.
“We have 64 days left to bring in another $10 billion,” Hougan said. “I think we’ll do that — and then some.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.