Headline: Bitwise Expects Unprecedented Capital Inflows into Bitcoin ETFs This Quarter Translation: Bitwise Expects Unprecedented Capital Inflows into Bitcoin ETFs This Quarter

Spot Bitcoin ETFs in the United States are poised to attract unprecedented capital inflows in the fourth quarter, as predicted by Matt Hougan, the Chief Investment Officer of Bitwise.

He anticipates that by the end of 2025, the total investments in Bitcoin-based exchange-traded funds (ETFs) will significantly surpass last year’s figure of $36 billion.

Hougan identified three primary drivers of these inflows: the approval of cryptocurrency investments by asset managers, the recent uptick in the price of digital gold, and engaging in “devaluation trades.”

According to Hougan, major players like Morgan Stanley have begun to incorporate crypto assets into diversified portfolios more flexibly. Experts have recommended that conservative investors maintain a zero exposure to cryptocurrencies, while those willing to take on more risk might consider allocations of 2-4% of their capital.

Leading financial institutions such as Wells Fargo, UBS, and Merrill Lynch are making similar decisions. The analyst noted that this indicates a growing demand for Bitcoin ETFs among professional advisors.

This year, Bitcoin and gold have emerged as the top-performing assets, reinforcing the relevance of the “devaluation trade” strategy. The money supply in the United States has increased by 44% since 2020, prompting investors to seek protection from the devaluation of fiat currencies.

According to the CIO of Bitwise, the surge in Bitcoin’s price is also driving new inflows into ETFs. In every quarter where Bitcoin has delivered double-digit returns, billions of dollars have flowed into these exchange-traded funds.

The recent short-term surge of digital gold exceeding $125,000 has garnered significant media and investor attention. The analyst believes this signals a new wave of momentum in the final quarter of the year.

He noted that within the first four trading days of October, Bitcoin ETFs had already recorded a total influx of $3.5 billion. The cumulative total since the beginning of the year has reached $25.9 billion.

“We have 64 days left to pull in another $10 billion. I believe we will achieve this and possibly more,” Hougan concluded.

It is worth mentioning that Bitwise has identified Solana as a potential future favorite on Wall Street.