Spot Bitcoin Exchange Traded Fund (ETF) total assets under management (AUM) reached $59.1 billion in the first three months of the year, exceeding some asset forecasts, Bitwise revealed in a research report. April 11th.
JPMorgan and Bitcoin investment management firm NYDIG predicted that the Spot Bitcoin ETF could reach $36 billion and $30 billion in assets under management by the end of the year. Meanwhile, Matrixport predicted that the ETF will gain AUM of $24 billion to $50 billion by December 31, 2024.
With actual AUM nearly double the companies’ previous forecasts, the Spot Bitcoin ETF is poised to live up to more optimistic forecasts from CryptoQuant, Standard Chartered, and Bloomberg Intelligence.
Bloomberg and Standard Chartered expect the ETF to end the year with about $100 billion in assets under management, while CryptoQuant believes it could reach $150 billion.
The data also includes Grayscale’s GBTC, which accounts for $22.26 billion in total assets under management, most of which has been outflows since its inception.
Other major ETF data
The Bitwise report also revealed that demand for Spot Bitcoin ETFs far exceeded new BTC production in Q1 2024. In the first quarter, miners produced 74,756 BTC, while ETFs ingested a total of 212,852 BTC. This is 2.8 times the production amount.
The report states that a reduction in mining production caused by Bitcoin’s upcoming halving (expected to occur around April 20th) could impact the supply-demand ratio. .
Bitcoin ETFs also performed well against the two largest U.S. gold ETFs. In the first quarter, Spot Bitcoin ETFs saw $12 billion in inflows, while gold ETFs saw $3 billion in outflows.
Despite their widespread success, Bitcoin ETFs represent only a small portion of Bitcoin ownership. The Bitcoin ETF holds 800,000 BTC, representing 3.9% of total Bitcoin holdings. Individuals (57%), inactive accounts (17.6%), and several other smaller categories hold the rest of the Bitcoin.
Bitcoin survey results
Bitwise’s report also shows that Bitcoin has performed well year-to-date, with its value increasing 66.99% year-to-date, outpacing the growth of nearly every market, including U.S. stocks (10.56%) and gold (8.09%). He pointed out that there was. , DM stock (5.81%), and other markets.
Bitwise CIO Matt Hougan also noted that “the correlation between Bitcoin and the S&P 500 is low,” with the report showing a correlation of 0.11 between Bitcoin and the US stock market.
This correlation is very important because how well Bitcoin correlates with traditional markets determines whether Bitcoin is a risk-on asset or a hedge against traditional markets.
Hogan said Bitwise’s report should spark a “surprisingly bullish” attitude towards the crypto market. He noted that cryptocurrencies have been in a bull market phase for the past year and a half, and bull markets typically last three years, so the strong performance could continue.
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https://cryptoslate.com/bitwise-reveals-spot-bitcoin-etfs-outperformed-pre-release-predictions-by-a-significant-margin/
