Bitwise Investment Chief Predicts US Bitcoin ETFs Could Attract Over $50 Billion in 2025
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On February 1, Bitwise Investment Chief Matt Hougan forecasted that US Bitcoin ETFs could attract over $50 billion in inflows by the end of 2025. He highlighted that US Bitcoin ETFs already saw $4.94 billion in January 2025, adding to the $35.2 billion generated throughout 2024.
Hougan Draws Basis on Recent US Bitcoin ETFs Month-to-Month Volatility in Flows
In an X post, Bitwise Investment Chief shared his outlook on the future of US Bitcoin ETFs, emphasizing the significant volatility seen in their month-to-month inflows. This volatility, which Hougan highlighted, stems from the unpredictable nature of inflows in 2024.
It's worth noting, there's significant month-to-month volatility in flows. Still, I think we end the year north of $50b.
Jan 2024: $1.5b
Feb 2024: $6.0b
Mar 2024: $4.6b
Apr 2024: (-$0.3b)
May 2024: $2.1b
Jun 2024: $0.7b
Jul 2024: $3.2b
Aug 2024: (-$0.1b)
Sep 2024: $1.3b
Oct.…— Matt Hougan (@Matt_Hougan) February 1, 2025
For instance, February and November 2024 were the only months to see inflows above $6 billion, while October followed closely with $5.4 billion. Other months, like March and December, saw inflows surpassing $4 billion, while April and August recorded small negative outflows.
Despite these fluctuations, Hougan remains confident that Bitcoin ETFs are poised for substantial growth in the coming year.
The final months of 2024 reinforced this outlook. Between October and December, Bitcoin ETFs saw a surge of $16.5 billion in inflows, almost half the total $35.2 billion for the year. This was a clear sign of growing investor confidence.
The first month of 2025 continued this strong momentum, with Bitcoin ETFs already attracting $4.94 billion in January. These impressive figures suggest that the interest in Bitcoin ETFs is not only persistent but growing, setting the stage for Hougan’s $50 billion projection.
One key event during this period was the massive inflow into US Bitcoin ETFs on January 6, which saw nearly $1 billion in investments and President Trump’s executive order to make crypto a national focus.
𝗕𝗶𝘁𝗰𝗼𝗶𝗻 𝗘𝗧𝗙 𝗙𝗹𝗼𝘄 (𝗨𝗦$ 𝗺𝗶𝗹𝗹𝗶𝗼𝗻) – 2025-01-06
TOTAL NET FLOW: 978.6
IBIT: 209.1
FBTC: 370.2
BITB: 71.2
ARKB: 152.9
BTCO: 0
EZBC: 8.9
BRRR: 0
HODL: 17.3
BTCW: 0
GBTC: 73.8
BTC: 75.2For all the data & disclaimers visit:https://t.co/Wg6Qpn0Pqw
— Farside Investors (@FarsideUK) January 7, 2025
BlackRock’s iShares Bitcoin Trust ETF (IBIT) took the lead, pulling in $3.2 billion in January, followed by Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $1.3 billion.
In December 2024, Bitwise published a forecast predicting that Bitcoin ETFs would attract greater inflows in 2025 than in 2024.
Hougan’s recent statements, bolstered by January’s strong inflows, show that the company’s confidence in its previous predictions is well-founded.
Growing Bitcoin Adoption and Pro-Crypto Environment Would Increase Bitcoin ETFs
Matt Hougan’s projection for Bitcoin ETFs is closely linked to the rising exposure of Bitcoin as an asset. Bitcoin ETFs provide investors with a way to gain exposure to Bitcoin without the complexities of directly purchasing or storing the cryptocurrency.
These ETFs hold Bitcoin as an underlying asset and track its price, allowing investors to trade shares on traditional stock exchanges.
The growing popularity of Bitcoin is evident, with BlackRock releasing a report on January 13 which revealed that Bitcoin adoption has surpassed even these major technologies, with 300 million users globally in just 12 years, far faster than the 21 years it took mobile phones and 15 years for the internet to reach similar milestones.
Time taken to reach 300M users:
Mobile Phones – 21 years
Internet – 15 years
Crypto – 12 yearsCrypto's pace of adoption has been even faster than mobile phones & the internet!
Prediction: Crypto will hit 1 billion users by 2030Image credit: @BlackRock pic.twitter.com/EteNuQDWY0
— Sumit Gupta (CoinDCX) (@smtgpt) January 14, 2025
Additionally, recent developments in the US, such as Utah’s House Economic Development Committee’s approval of HB 230, a bill aimed at allowing the state to make crypto investment decisions, further reinforce the momentum toward wider Bitcoin adoption.
This rapid growth in Bitcoin adoption indicates that the demand for Bitcoin-related investment products, like ETFs, will likely continue increasing.