Inflows into spot exchange-traded funds (ETFs) based on the first cryptocurrency are projected to reach $50 billion this year, according to Bitwise CIO Matt Hougan.
It’s worth noting, there’s significant month-to-month volatility in flows. Still, I think we end the year north of $50b.
Jan 2024: $1.5b
Feb 2024: $6.0b
Mar 2024: $4.6b
Apr 2024: (-$0.3b)
May 2024: $2.1b
Jun 2024: $0.7b
Jul 2024: $3.2b
Aug 2024: (-$0.1b)
Sep 2024: $1.3b
Oct.…— Matt Hougan (@Matt_Hougan) February 1, 2025
The expert extrapolated data from January 2025, during which investors allocated $4.94 billion to these products. On an annualized basis, this equates to approximately $59 billion.
For comparison, in 2024, these instruments attracted $35.2 billion.
Hougan noted the “significant month-to-month volatility” in these figures.
In January, the leaders in inflows were BlackRock’s IBIT with $3.2 billion and Fidelity’s FBTC with $1.3 billion. Bitwise’s BITB, with $125 million, ranked fifth after Grayscale’s BTC, which had $398.5 million, according to Farside.
In this year’s review, company specialists forecasted bitcoin’s rise to $200,000.
They identified the following drivers:
- continued record inflows into spot ETFs;
- new purchases of the asset by corporations and governments;
- a reduction in supply due to the April 2024 halving.
Earlier, Bitwise predicted “less severe” bitcoin corrections thanks to initiatives by U.S. President Donald Trump.
According to Bernstein, TradFi investors are just beginning to explore digital assets.