Spot Bitcoin ETFs Surpass Predictions with $59.1 Billion in Assets Under Management
Spot Bitcoin exchange-traded funds (ETFs) have exceeded expectations in the first quarter of the year, with their collective assets under management (AUM) reaching $59.1 billion, according to a research report by Bitwise on April 11.
JP Morgan and Bitcoin investment management firm NYDIG had predicted that spot Bitcoin ETFs could achieve an AUM of $36 billion and $30 billion by the end of the year. Matrixport also anticipated an AUM between $24 billion and $50 billion by Dec. 31, 2024.
The actual AUM of $59.1 billion is nearly double the earlier predictions, and spot Bitcoin ETFs are on track to meet the more optimistic forecasts made by CryptoQuant, Standard Chartered, and Bloomberg Intelligence. Bloomberg and Standard Chartered project an end-of-year AUM of around $100 billion, while CryptoQuant believes it could reach $150 billion.
Grayscale’s GBTC, which accounts for $22.26 billion of the collective AUM, has mostly seen outflows since its launch.
Bitwise’s report also revealed that spot Bitcoin ETF demand far exceeded new BTC production in the first quarter of 2024. Miners produced 74,756 BTC, while the ETFs collectively took in 212,852 BTC — 2.8 times higher than the amount produced.
Despite their success, Bitcoin ETFs represent only a small portion of Bitcoin ownership, holding 800,000 BTC, which is 3.9% of all Bitcoin ownership.
The report also highlighted Bitcoin’s strong performance year-to-date, with a 66.99% increase, outperforming other markets such as US equities, gold, and DM equities. Bitwise CIO Matt Hougan noted the low correlation between Bitcoin and the S&P 500, suggesting that Bitcoin could serve as a hedge against traditional markets.
Overall, the report paints a bullish outlook for the crypto market, with Hougan suggesting that the current bull market phase could continue for the next few years.
