EXCLUSIVE: Bitcoin ETF Experts On Past, Present And Future Of Sector — Why US Buying BTC Could Be 'Monumental Moment'

According to several experts in the sector, Bitcoin ETFs and cryptocurrency-related ETFs have made significant progress since launching in January 2024 and setting inflow records.

Here's what three Bitcoin-ETF experts had to say about the sector’s growth, why people are choosing Bitcoin ETFs, what the U.S. buying Bitcoin BTC/USD could mean for demand and validation, and what comes next for cryptocurrency ETFs.

Beating Expectations: The launch of Bitcoin ETFs has been an “amazing journey” that could be “just beginning,” WisdomTree Global Head of Research Chris Gannatti said at Benzinga's recent ETF event.

"At WisdomTree, we've been amazed to watch the appetite, the adoption," Gannatti said.

Gannatti said it's clear there was pent-up demand for Bitcoin ETFs and everyone has now seen "incredible growth."

WisdomTree was one of the first companies with a Bitcoin ETF with the WisdomTree Bitcoin Fund BTCW.

Bitwise Asset Management Head of Research Ryan Rasmussen echoed the early success of Bitcoin ETFs with his company behind the Bitwise Bitcoin ETF Trust BITB and several other crypto-related ETFs.

"The adoption and performance of Bitcoin ETFs since they launched in the US since last January is just incredible," Rasmussen said.

Rasmussen said Bitcoin ETFs broke the one-year record for inflows and continue to see strong demand.

"We're extremely excited about it. Just getting started."

After the launch of the initial batch of Bitcoin ETFs came other funds like the Innovator Uncapped Bitcoin 20 Floor ETF QBF, which offers limited downside for investors.

Innovator Director of Product Strategy Andrew Nelson said the initial growth of Bitcoin ETFs is what spurred the company launching a crypto ETF.

"There's room for everybody," Nelson said.

Nelson said Innovator's fund creates additional investment opportunities for investors and another tool in their tool kit when looking for exposure to Bitcoin.

Why Bitcoin ETFs?: When asked why there's room for Bitcoin ETFs alongside investing directly in Bitcoin, the expert panel didn't flinch.

Nelson said Bitcoin ETFs like the one from Innovator provide "unique exposure" for investors.

Summarizing his company's ETF in three sentences, he said it's, "Bitcoin, 20% max loss, and no cap."

The Innovator fund offers an uncapped upside while providing a 20% max loss each quarter for investors. Nelson said this is not something you can engineer on your own just by holding Bitcoin.

Rasmussen echoed this sentiment saying there are different things ETFs can do like derivatives and options along with getting access to "institutional grade custody" of Bitcoin.

With Bitcoin ETFs, there's less risk for asset managers than worrying about self-custody and other aspects for clients, Rasmussen added.

Countries and Companies Adding Bitcoin: Another key growth topic for Bitcoin and Bitcoin ETFs could be the stockpiling of the leading cryptocurrency by countries and companies.

Gannatti said that some see the degree of success Michael Saylor has had with Strategy Inc MSTR buying Bitcoin and they want to follow it.

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"People who have achieved great success get great attention," Gannatti said.

Gannatti also said the US being more crypto-friendly isn't a done deal, but things are changing.

"The current administration is pushing the ball down the field in a positive direction."

Without giving a price prediction, Gannatti said if the only goal is to get the price of Bitcoin to go up fast, the U.S. buying Bitcoin could be the quickest way.

Rasmussen highlighted the sector’s change. The fact that a person predicting some of the things that happened five years ago would have been laughed at and called crazy, he added.

"I think it's crazy that we're seeing corporations and governments buy Bitcoin, not in a bad way," Rasmussen said.

Rasmussen referenced how GameStop GME recently bought Bitcoin. More companies are saying they're adding the cryptocurrency to hedge against national debt, inflation, and geopolitical concerns.

"I still think we're in the early stages of seeing mass adoption by governments and corporations."

Rasmussen added that, "no government wants to be the last mover when it comes to this."

Pension funds that have yet to invest in Bitcoin say they’d feel comfortable adding cryptocurrency to their portfolios if the U.S. purchases Bitcoin, the panelist added.

"I think that is one of those monumental moments,” he added.

More demand from countries and corporations could lead the price of Bitcoin higher, Nelson said.

Nelson said the idea is that high demand drives prices higher in a supply-constrained environment. The U.S. buying Bitcoin could be a positive action for the sector. Yet, Nelson added, it might not be the same initial demand that happened when Bitcoin ETFs launched.

"We think it's a positive for the space."

What's Next: Bitwise predicts Bitcoin will hit $200,000 by the end of 2025 and $1 million by 2029. Rasmussen said these are predictions and not investment advice but show confidence in the long term.

Going forward, the company is also launching more ETFs in the cryptocurrency space. This includes covered call income strategy funds around public crypto-companies like Strategy, MARA Holdings MARA and Coinbase Global COIN.

"We're spending a lot of time thinking about what products do investors want access to," Rasmussen said.

Innovator has just one current cryptocurrency ETF — QBF. However, the company is closely monitoring the space and the options market to see where the demand is, Nelson said, adding, "We're looking at Ethereum of course, because of its already approved nature.”

Innvoator also monitors Solana SOL/USD and XRP CRYPTO:XRP).