Bloomberg ETF analyst James Seyffart said trillions of dollars in advisor-managed wealth are still on the sidelines, and even a small increase in allocation could create significant new demand for Bitcoin ETFs. According to ChainCatcher, he said Bitcoin ETF daily inflows once approached $1 billion.

Seyffart said strict rules at large brokerages such as Morgan Stanley and JPMorgan are still limiting financial advisers from buying Bitcoin ETFs for clients, while low target allocation levels remain a key constraint. He added that many advisers had previously chosen to wait until the bear market ended before entering the market.

He also said the roughly $30 trillion to $40 trillion in advisor wealth is a long-overlooked data point. Seyffart discussed Bitcoin ETF cost bases, whether ETF inflows can truly push Bitcoin prices higher, who is selling among spot holders and ETF investors, the unwinding of Bitcoin basis trades by hedge funds, and whether Bitcoin ETFs could eventually surpass gold ETFs. He said the four-year cycle is losing influence and that Bitcoin is increasingly viewed as a risk asset.