Bitwise CIO believes Bitcoin ETFs will pull $50 billion in inflows this year

Bitwise chief investment officer Matt Hougan expects Bitcoin exchange-traded funds (ETFs) to attract up to $50 billion in inflows this year and meet the digital assets firm’s predictions. In a post on X, Hougan noted that the ETFs have already achieved $4.9 billion in inflows for January 2025.

According to Hougan, if the January flow is annualized, Bitcoin ETFs would record around $59 billion in inflows, far above the $35.2 billion inflows in 2024.

He said:

“So far, so good: Spot bitcoin ETFs pulled in $4.94 billion in January, which annualizes to ~$59 billion. For context: In all of 2024, they brought in $35.2 billion.”

However, the investment expert acknowledged that inflows are unlikely to remain at the same level all year round, and there will be some volatility throughout the year. He noted that the ETFs experienced the same volatility in flows in 2024, with the highest inflow coming in November 2024 with $6.4 billion, while there were two months of outflows all year round.

Bitcoin ETFs attracting more inflows this year than recorded in 2024 is one of the top ten Bitwise predictions for 2025.

More spot crypto ETFs are likely on the way

While spot Bitcoin ETFs will likely remain the dominant crypto ETF product, recent developments suggest that the US Securities and Exchange Commission (SEC) could approve other crypto ETFs in 2025. So far, issuers have filed ETF applications for several digital assets, including Solana, XRP, Dogecoin, Litecoin, Polkadot, and memecoins.

Although there is no assurance yet on whether the SEC will approve any of the applications, the status of the sponsors, which include Grayscale and Bitwise, and the expected pro-crypto administration at the SEC are all positive signs.

However, ETF Store president Nate Geraci believes that all these ETF filings are not major news yet. According to him, a BlackRock filing for any other crypto ETF is the only one that can have a major impact, as this effectively confirms that the SEC will approve such a product.

Investors’ shift from US treasuries to benefit Bitcoin

Meanwhile, Bitwise also predicted that Bitcoin would be worth $200,000 in 2025. While it is too early to call this prediction, the recent decline in the flagship asset value means it trades farther away from the $200,000 target.

However, Bitwise Europe Head of Research André Dragosch believes that Gold’s recent performance signals that BTC will see major gains this year as the market goes through a structural change.

According to Dragosch, signals in the gold market show that investors no longer see US Treasury bonds as safe-haven assets and are now rotating into alternative assets, including Gold and Bitcoin.

The researcher highlighted positive performance indicators for Gold, including the asset reaching a new all-time high near $3,000 and the increasing demand for Gold in the US. Additionally, he noted that Gold’s positive performance aligns with Bitcoin’s over the past 12 months.

However, Dragosh noted the divergence between Gold and long-term US treasury treasuries. He attributed this to institutional investors, including several foreign central banks, moving away from US Treasuries into Gold.

He said:

“The gold market signals that BIG structural shifts are underway which imply that US Treasuries are not considered to be the safe-haven asset anymore. Institutional investors are diversifying their holdings out of US Treasuries into alternative assets.”

With investors shifting away from US Treasuries, the expert believes that Bitcoin will also benefit because it has zero counterparty risk and a limited supply, making it attractive as a hedge against high inflation and sovereign default. Signs of that are already evident with the Governor of Czech National Bank, Aleš Michl, announcing plans to diversify into BTC recently because it has a low correlation with government bonds.

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