Leading digital asset index fund manager Bitwise Investments recently shared compelling predictions for the digital asset market in 2024, projecting a bullish trajectory. It foresees the approval of Bitcoin Spot Exchange-Traded Funds (ETFs) and a notable shift in the adoption landscape among financial advisors.
Bitwise predicts bitcoin will scale new heights, surpassing $80,000 and establishing an unprecedented all-time high (ATH). Building on its exceptional performance in 2023, where it outshone traditional asset classes with a remarkable 128% surge, Bitcoin is poised for continued success in 2024.
The fund manager attributes the $80,000 surge to two pivotal catalysts. First, the imminent launch of a Bitcoin Spot ETF, expected in early 2024, is foreseen to attract a surge of capital from both retail and institutional investors. Simultaneously, the upcoming Bitcoin halving in April 2024, effectively reducing new Bitcoin entering the market by $6.2 billion annually, is set to further fuel the demand-supply dynamics.
BitWise and Approval of Bitcoin Spot ETFs
Bitwise envisions the approval of Bitcoin Spot ETFs, heralding them as the most successful ETF launch in history. Notably, Bloomberg’s ETF analysts estimate a 90% likelihood of the United States Securities and Exchange Commission’s approval in early 2024, particularly between January 5 and 10, 2024. The firm states:
“Of course, a spot bitcoin ETF has to do more than just launch. If an ETF is going to impact the market in a major way, it must gather significant assets.”
Internal studies by Bitwise suggest that Bitcoin Spot ETFs could secure 1% of the vast $7.2 trillion U.S. ETF market, translating to an impressive $72 billion within five years. The potential for these ETFs to shape the Bitcoin landscape is substantial, with Bitwise’s estimates leaning conservatively compared to public expectations.
It is important to note that Bitwise recently listed its Bitcoin Spot ETF on the Depository Trust and Clearing Corporation (DTCC) under the ticker BITB. The firm’s Chief Investment Officer, Matt Hougan, signaled growing optimism within the sector. He indicated Bitwise’s development of marketing, sales strategies, and regulatory efforts by stating:
“We’re preparing as though there’s going to be a launch.”
Hougan further revealed his company’s engagements with regulators by noting that it is common for “all the firms” to meet with the SEC.
Financial Advisors to Embrace Digital Assets
It is interesting to note that Bitwise predicts a transformative shift in the financial advisory landscape. In particular, the fund manager predicts that at least 25% of financial advisors in the U.S. will embrace digital assets in their clients’ portfolios by the end of 2024. Despite a historically low adoption rate among financial advisors, the tide could turn after the regulatory recognition of Bitcoin in the form of Spot ETFs.
Bitcoin’s resurgence from the challenges of 2022 has underscored its enduring nature. The potential launch of a Spot ETF can increase Bitcoin’s accessibility for financial advisors. Bitwise states:
“If our prediction that a spot bitcoin ETF will go live early next year is accurate, then every financial advisor in America will soon be able to allocate to bitcoin in a couple of mouse clicks.”
Bitwise’s recent predictions for the digital asset market present an optimistic outlook, forecasting Bitcoin’s record high price and a surge in adoption among financial advisors. These insights anticipate a dynamic and promising landscape for digital asset enthusiasts in 2024.
