Spot Bitcoin exchange-traded funds (ETFs) have exceeded expectations regarding their assets, with a collective assets under management (AUM) reaching $59.1 billion in the first quarter of the year, according to a research report by Bitwise on April 11.

Forecasts from JP Morgan, NYDIG, and Matrixport had anticipated AUM figures ranging from $24 billion to $50 billion by the end of 2024. However, the actual AUM nearly doubled these predictions, indicating a promising trajectory for spot Bitcoin ETFs.

More optimistic projections by CryptoQuant, Standard Chartered, and Bloomberg Intelligence suggest that by the end of the year, the AUM could reach as high as $150 billion. Bloomberg and Standard Chartered project an AUM of approximately $100 billion.

Despite Grayscale’s GBTC, which contributes $22.26 billion to the collective AUM, experiencing mostly outflows since its launch, spot Bitcoin ETFs continue to demonstrate strong performance. Bitwise's report also highlighted that the demand for spot Bitcoin ETFs significantly surpassed new BTC production in the first quarter of 2024.

Furthermore, Bitcoin ETFs have shown robust 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.

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

Bitwise CIO Matt Hougan emphasized the low correlation between Bitcoin and the S&P 500, suggesting Bitcoin's potential as a hedge against traditional markets. Hougan's remarks reflect a bullish sentiment towards the crypto market, indicating the potential for sustained strong performance.