Spot Bitcoin ETFs Shatter Predictions with Record AUM Growth
Bitcoin ETFs soar, crushing AUM estimates with a $59.1B surge
Bitwise's latest analysis unveiled that spot Bitcoin ETFs have exceeded expectations, amassing an AUM of $59.1 billion in just three months.
Forecasts from financial experts like JP Morgan and NYDIG, which predicted year-end AUMs of $36 billion and $30 billion, have been notably surpassed.
Even Matrixport's upper-end prediction of $50 billion by year's end was outdone.
Spot Bitcoin ETFs, with Grayscale's GBTC making up $22.26 billion, are now poised to meet or even exceed loftier forecasts from Bloomberg and Standard Chartered, aiming at a $100 billion year-end AUM and CryptoQuant's ambitious $150 billion target.
The report highlights an overwhelming demand for spot Bitcoin ETFs, with intakes of 212,852 BTC dwarfing the 74,756 BTC produced by miners. This trend may intensify post-Bitcoin halving, which is expected to reduce mining yields.
Inflows into spot Bitcoin ETFs reached $12 billion, far outpacing the $3 billion outflows from top U.S. gold ETFs. Still, Bitcoin ETFs represent a small portion of total Bitcoin holdings, with individual and inactive accounts holding the lion's share.
Regarding market performance, Bitcoin's value increased by 66.99% year-to-date, leading to growth across various markets.
Hougan of Bitwise pointed out Bitcoin's low 0.11 correlation with U.S. equities, suggesting its potential as a market hedge rather than a risk asset.
Citing the longevity of crypto bull markets, Hougan's interpretation of the report is "staggeringly bullish" for the future of the crypto market, hinting at the possibility of sustained growth.
