3 Reasons Why Bitcoin ETFs Will See Explosive Growth In 2025, According To Bitwise
12 Décembre 2024 - 10:30AM
NEWSBTC
The Bitcoin (BTC) market has undergone a remarkable recovery this
year, largely due to the increased popularity of Bitcoin ETFs. BTC
reached an all-time high of $73,000 in the first quarter of the
year, sparking a bullish trend that continues today, with a recent
high of $104,000. The presidential election of Donald Trump has had
a huge impact on this rise especially over the past month, as he
has positioned himself as the first pro-crypto President, picturing
America as the “crypto capital of the world.” Trump’s favorable
position toward digital assets has infused increased optimism among
investors, resulting in increased buying pressure from Bitcoin ETF
providers such as BlackRock and Fidelity. Notably, the top 12
Bitcoin ETFs have emerged as the biggest BTC holders, with a
combined asset value of over $100 billion. This figure
represents one of the most successful ETF launches in financial
history, with the 12 spot Bitcoin ETFs now collectively owning
approximately 1.1 million BTC—equivalent to about 5% of all Bitcoin
in circulation. Bitcoin ETFs Expected To Surpass 2024 Inflows
In a recent report, crypto asset manager Bitwise outlined three key
factors that suggest Bitcoin ETFs will continue to see explosive
growth in 2025. Initially, it’s important to note that the first
year of ETF operations is typically the slowest. Related
Reading: Bitwise Forecast: Bitcoin, Ethereum, And Solana Poised For
Record Highs In 2025 Historical comparisons with gold ETFs launched
in 2004 show a significant increase in inflows over subsequent
years. For instance, gold ETFs began with $2.6 billion in their
first year, followed by $5.5 billion in the second year, and
progressively higher amounts in the following years. The firm
suggests that if the 12 spot Bitcoin ETFs in the United States
follow a similar trajectory, 2025 could see inflows that far exceed
those of 2024. Another factor contributing to potential growth is
the anticipated participation of major financial wirehouses. Firms
such as Morgan Stanley, Merrill Lynch, Bank of America, and Wells
Fargo have yet to fully deploy their wealth management teams to
promote Bitcoin ETFs. As regulatory environments become more
favorable under Trump, these institutions are expected to unlock
access to Bitcoin ETFs for their clients, potentially directing
trillions of dollars into the crypto market. Investors ‘Laddering
Up’ Finally, Bitwise has identified a clear trend among investors
known as “laddering up.” This pattern indicates that initial small
contributions to Bitcoin frequently lead to increasing investments
over time. The asset manager believes that many investors who
entered the Bitcoin ETF market in 2024 will double down on their
investments in 2025. Related Reading: XRP Price Prediction: Last
Phase Of ABC Wave Points To A Bounce To New ATH At $5.85 The firm’s
assertion that “3% is the new 1%” indicates increasing acceptance
of Bitcoin as a genuine asset class, which they believe will lead
investors to dedicate a larger amount of their portfolios to
cryptocurrencies. At the time of writing, BTC had consolidated
above $100,900 following a 7% dip to $91,000 at the start of the
month. Over the previous 24 hours, the market’s biggest
cryptocurrency has seen an almost 4% price increase. Featured image
from DALL-E, chart from TradingView.com
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