Bitwise CIO Predicts Potential Trillion-Dollar Inflows into Bitcoin Spot ETFs
Hougan’s bullish prediction is based on Bitcoin’s impressive growth of nearly 300% over the past 15 months.
Hougan’s bullish prediction is based on Bitcoin’s impressive growth of nearly 300% over the past 15 months.
The Bitcoin ETF market continues to see new competitors. Hashdex, a crypto asset management firm, announced its futures fund’s transformation into a spot product.
The Bitcoin market is expected to continue to grow and mature as more investors look for exposure to BTC through spot ETFs and other investment vehicles.
Grayscale’s Sonnenshein justified high fees due to GBTC’s liquidity and track record. He explained that other ETFs may offer lower fees because they lack a proven track record, and issuers are enticing investors with fee incentives.
Fortunately for VanEck, its decision to crash management fees to 0% until next year attracted record inflow for the company.
Bitcoin demonstrated its boom-and-bust nature amid volatile price swings on Tuesday. Despite this, spot Bitcoin ETF recorded strong inflows amid high institutional demand.
The influx of investments into Bitcoin ETFs, culminating in a total of $563 million on March 4, signifies a robust institutional endorsement of cryptocurrency.
Bitcoin’s recent surge is driven by robust demand from new US spot Bitcoin ETFs with BlackRock Inc and Fidelity Investments garnering over $7 billion in net inflows since their launch on January 11.
The massive Bitcoin price rally in 2024 is majorly due to the continuous inflows into the Bitcoin ETFs launched in January.
Bloomberg ETF analyst Eric Balchunas noted that the overall record-breaking trading volumes weren’t restricted to spot ETFs alone.