According to a recent report by Bitwise, spot Bitcoin exchange-traded funds (ETFs) have exceeded expectations by reaching a collective assets under management (AUM) of $59.1 billion in the first three months of the year. This outperformed predictions from JP Morgan, NYDIG, and Matrixport.

Original estimates from these companies predicted AUM figures much lower than the actual amount, with projections now approaching $100 billion from Bloomberg and Standard Chartered, and $150 billion from CryptoQuant. Grayscale's GBTC, despite mostly experiencing outflows, accounts for a significant portion of this collective AUM.

Bitwise's report also highlighted the demand for spot Bitcoin ETFs outstripping new BTC production during the first quarter of 2024, suggesting a potential impact from Bitcoin's upcoming halving. These ETFs saw substantial inflows compared to gold ETF outflows and represent only a small percentage of overall Bitcoin ownership.

In terms of performance, Bitcoin has shown significant growth year-to-date, outperforming major markets such as US equities, gold, and DM equities. Bitwise's CIO, Matt Hougan, noted the low correlation between Bitcoin and the S&P 500, indicating its potential as a risk-on asset or a hedge against traditional markets. With the crypto market showing bullish signs and Bitcoin's strong performance continuing, confidence in the sector remains high.