Bitwise Asset Management Predicts Continued Growth for Spot Bitcoin ETFs as Bitcoin Price Hits $50,000
Spot bitcoin ETFs are experiencing a surge in volumes, prompting Bitwise Asset Management to predict a high ceiling for growth. The price of bitcoin reached $50,000 today, just a month after the U.S. Securities and Exchange Commission (SEC) approved 11 applications for spot bitcoin ETFs. The demand for these ETFs has far exceeded initial expectations, with assets under management totaling approximately $28.35 billion, resulting in a market cap of $39.8 billion, according to Blockworks data. Trading volume over a 24-hour period reached $1.38 billion.
Leading the pack of spot bitcoin ETFs is Grayscale Bitcoin Trust, with assets totaling $20.27 billion. This is followed by BlackRock’s iShares Bitcoin Trust at $3.31 billion and Fidelity’s Wise Origin Bitcoin Trust at $2.75 billion.
“The sustained inflows and volumes are higher than I anticipated,” said Matt Hougan, chief investment officer at Bitwise Asset Management. “It makes me extremely optimistic about where bitcoin’s price is going and its importance in the world.” Bitwise runs the Bitwise Bitcoin ETP, which is currently the fourth-largest spot bitcoin ETF by market cap. In preparation for the anticipated approval, Bitwise conducted over 20,000 meetings last year with financial advisors. “It was nerve-wracking to launch,” Hougan stated. “We provide crypto asset funds, so we needed to be relevant.” Bitwise’s fee of 0.20% is the second-lowest among these ETFs, reflecting their desire to remain competitive.
Hougan also believes that demand will continue to rise as more national account platforms come online and large institutions express interest. Although these institutions may not be making large purchases of bitcoin immediately, there have been significant inbound requests and meetings with platforms that manage billions of dollars in assets. A month after the SEC approvals, Hougan foresees the spot bitcoin ETFs becoming the “biggest ETF launch of all time.” He added, “Even after being in the ETF industry for 15 years, it’s unlike anything I’ve ever seen.”
Hougan is optimistic that volumes will continue to increase over the next 11 months, stating, “I don’t think demand is slowing down for the next 18 months. I expect these ETFs to set records.” Looking ahead, Bitwise is considering other products, such as Ethereum spot ETFs. “We’ve entered the ETF era of crypto, and we’ve proven that investors want to access crypto through ETFs. We’re going to provide those products to the extent possible under regulation,” Hougan revealed.
Analyst comment
This news can be evaluated as positive. As an analyst, I predict that the market for spot Bitcoin ETFs will continue to experience significant growth in the coming months, with increasing volumes and demand. The approval of spot Bitcoin ETFs by the SEC has led to a surge in assets under management and trading volumes. Bitwise Asset Management, along with other major players, expects continued growth and plans to expand their offerings to include other products like Ethereum spot ETFs. Overall, the market for spot Bitcoin ETFs is expected to set records and attract more institutional interest.
