Bitwise CIO Matt Hougan Predicts Record Bitcoin ETF Inflows in Q4

Highlights:

• Bitwise CIO Matt Hougan expects Bitcoin ETF inflows to surge sharply in Q4, setting new records.
• Hougan credits wealth manager approvals, rising Bitcoin prices, and the “debasement trade” for strong market momentum.
• He noted that gold and Bitcoin remain top-performing assets as investors seek protection from currency weakness.

In a memo to clients late Tuesday, Bitwise Chief Investment Officer Matt Hougan predicted that inflows into Bitcoin exchange-traded funds (ETFs) will surge in the fourth quarter. He said the increase will be significant and could break previous records for these funds. Hougan explained that one of the main reasons for this surge is Bitcoin’s rising price. He expects U.S. BTC ETFs to “set a record” in the fourth quarter. According to him, these ETFs will bring in more money in 2025 than they did in their first year, when they attracted $36 billion in inflows.

ETF Inflows Poised to Hit Record as Bitcoin Demand Grows

The ETFs have attracted about $22.5 billion in the first nine months of the year. This trend suggests they could finish 2025 with nearly $30 billion in total inflows if it continues. Hougan said that he had no major concerns about the current pace.

He noted that several factors appear to be aligning for a strong fourth quarter, possibly setting a new record. “Although it’s a bit counterintuitive, higher prices often spur greater demand for Bitcoin ETFs as the media, companies, and everyday investors pivot their attention to Bitcoin,” Hougan said.

Bitwise’s Chief Investment Officer shared three key reasons for expecting a strong quarter. He mentioned that more wealth managers are approving crypto investments, Bitcoin’s price has been rising, and interest in the “debasement trade” story is growing. 

Bitwise CIO expects record inflows into spot BTC ETFs in Q4 2025, noting that inflows into BTC ETFs currently exceed inflows into gold ETFs. pic.twitter.com/hoEKHr2uPB

— Sjuul | AltCryptoGems (@AltCryptoGems) October 8, 2025

Wall Street Embraces Crypto and ‘Debasement Trade’ Trend

Morgan Stanley has set new crypto investment limits for its portfolios. It advised cautious investors to keep no crypto exposure, while those willing to take more risk can invest between 2% and 4%. This step shows a growing shift in the financial industry.

This is huge.

New Special Report from Morgan Stanley GIC:

"we aim to support our Financial Advisors and clients, who may flexibly allocate to cryptocurrency as part of their multiasset portfolios."

GIC guides 16,000 advisors managing $2 trillion in savings and wealth for… pic.twitter.com/RBWFxlRNkS

— Hunter Horsley (@HHorsley) October 5, 2025

Wells Fargo now allows its advisors to invest client funds in Bitcoin ETFs, and other large firms like UBS and Merrill Lynch are expected to follow soon. Hougan said that it will take time for full adoption across advisory firms and financial professionals. However, Bitwise’s recent talks with advisors show strong interest and growing demand for crypto investments.

Gold and Bitcoin have become the best-performing major assets this year. Wall Street calls this trend the “debasement trade,” where investors buy assets that gain value when currencies lose strength. Since 2020, the U.S. money supply has risen 44%, and JPMorgan recently noted this growing trend. As the year ends, many advisors are likely to include gold and Bitcoin in client portfolios to benefit from these strong performers, the Bitwise CIO said.

Bitwise noted that strong price gains have often increased demand for Bitcoin ETFs. Media coverage and investor interest usually boost inflows when prices rise. Recently, Bitcoin jumped past $125,000, gaining 9% in early October to reach a new all-time high. However, it has since pulled back slightly and is now trading around $121,948, according to CoinMarketCap data.