I really only wrapped mine for about a week after they were born - I was lucky to get babies who prefer to let it all hang out and even though they sometimes do that 'WHOA!' reflex and wake themselves up, they usually go straight back to sleep without anything from me.
DD2 is mainly co-sleeping but I do pop her in her bassinette some nights. On those nights, I tuck her blanket in at the sides of the bassinette but leave the bottom loose so she can kick her legs, and I leave her arms out. She sleeps soundly from about 10pm till 4 or 5am, when she hollers for a feed (and then I put her in with me to feed and fall asleep so she stays in bed until I wake up later).

If your bub doesn't seem to like being wrapped up, just give him a go bundled loosely or with just a blanket over him (tucked under his armpits so his arms are free, if that makes sense) and give it a go to see if he likes it or not. HTH