Bitwise, in its recent research report released on April 11, disclosed that spot Bitcoin exchange-traded funds (ETFs) have significantly surpassed initial predictions in terms of assets under management (AUM), reaching a collective AUM of $59.1 billion in the first quarter of the year.

Projections from industry giants such as JP Morgan, NYDIG, and Matrixport had initially estimated AUM figures ranging from $24 billion to $50 billion by the end of 2024. However, the actual AUM nearly doubled these forecasts, signaling a highly promising trajectory for spot Bitcoin ETFs.

More optimistic outlooks from CryptoQuant, Standard Chartered, and Bloomberg Intelligence suggest that by the year's end, the AUM could soar as high as $150 billion, with Bloomberg and Standard Chartered projecting an AUM of approximately $100 billion.

Despite Grayscale’s GBTC, which contributes $22.26 billion to the collective AUM, experiencing predominantly outflows since its inception, spot Bitcoin ETFs have continued to demonstrate robust performance. Bitwise's report also underscored that the demand for spot Bitcoin ETFs significantly outpaced new BTC production in the first quarter of 2024.

Moreover, Bitcoin ETFs have exhibited strong performance compared to the two largest US gold ETFs, with spot Bitcoin ETFs witnessing $12 billion in inflows against $3 billion in gold ETF outflows during the same period.

While Bitcoin ETFs represent only a fraction of Bitcoin ownership, they hold considerable potential in diversifying investment portfolios. Additionally, Bitcoin itself has displayed remarkable growth year-to-date, surpassing various markets including US equities, gold, and DM equities.

Bitwise Chief Investment Officer Matt Hougan highlighted the low correlation between Bitcoin and the S&P 500, suggesting Bitcoin's potential as a hedge against traditional markets. Hougan's sentiments reflect a bullish outlook towards the crypto market, signaling the potential for sustained robust performance.

On a separate note, Guy Ficco, head of criminal investigations at the IRS, revealed to CNBC on April 12 an uptick in "pure crypto tax crimes" coinciding with various scams. Ficco pointed out an escalation in tax crimes related to cryptocurrency, falling under Title 26 of the US Code, which encompasses federal income tax violations.

These crimes typically involve the failure to report income from cryptocurrency sales and the concealment of one's actual basis in cryptocurrency. Ficco anticipates that this issue will persist, leading to an increase in charges from the IRS in the forthcoming years. While IRS investigations into cryptocurrency have historically been part of broader inquiries into scams and embezzlement, Ficco acknowledged the growing prevalence of cryptocurrency in various types of crimes, such as phone and romance scams.

However, Ficco emphasized the distinction between crypto scams and tax-reporting crimes. His remarks coincide with a recent IRS reminder for individuals to report taxes on cryptocurrency transactions. Enforcement efforts surrounding cryptocurrency taxes are expected to escalate, with the IRS recruiting specialists in this domain and professionals bracing for heightened scrutiny.

Ficco's predecessor, Jim Lee, also underscored a heightened focus on tax issues in December 2023, with half of active crypto investigations at that time involving tax matters.