Bitwise Predicts Record Bitcoin ETF Inflows in Q4

• Bitwise Projects Record Bitcoin ETF Flows
• “Devaluation trading” gains traction among institutional investors
• Managers increase client exposure to crypto assets

Bitwise Asset Management projects that US spot Bitcoin ETFs will see record inflows in the fourth quarter, driven by the asset's price surge and growing adoption by wealth managers. The manager believes that total inflows could surpass the $36 billion recorded in 2024, setting a new milestone for the Bitcoin fund market.

Em release Speaking to clients, Bitwise's chief investment officer, Matt Hougan, stated that while 2025 flows are still around $22,5 billion, the strong performance in the final quarter of the year is expected to push the numbers to new all-time highs. He highlighted three main catalysts for this optimistic forecast: asset manager approvals, Bitcoin's appreciation, and the growing popularity of the "dim trade" narrative.

Recently, institutions like Morgan Stanley and Wells Fargo have begun allowing the inclusion of Bitcoin ETFs in client portfolios. Morgan Stanley, for example, established recommended allocations of between 2% and 4% for investors with a higher risk appetite. Other traditional asset managers, such as UBS and Merrill Lynch, are also considering following this trend, which could accelerate the entry of large institutional volumes in the coming months.

The "devaluation trade" thesis—investing in assets that appreciate when the currency's purchasing power declines—has been gaining traction on Wall Street. With the U.S. money supply growing 44% since 2020, investors have been seeking hedge funds, such as gold and Bitcoin, to preserve value. JPMorgan recently highlighted this trend as one of the drivers of global portfolio repositioning.

Bitcoin surpassed the $125 mark in early October, accumulating gains of 9% and bolstering capital inflows into ETFs. "In the first four trading days of the quarter, we've already seen $3,5 billion in net inflows, bringing the annual total to $25,9 billion," Hougan noted. "We have 64 more days to get another $10 billion. I think we'll do that and more."

Last Tuesday, ETFs added $875,6 million, led by BlackRock's IBIT, with $899,4 million in inflows. This marked the largest daily inflow since President Donald Trump's election victory, reinforcing the institutional strength behind the cryptocurrency market this holiday season.