BitWise Chief Investment Officer Matt Haugan said Q3 could be “one of the best quarters in crypto history,” citing the sharp rally in crypto prices and the start of a booming “crypto spring” in the onchain market.
In its quarterly market review published On Thursday, BitWise reported a 46.4% quarterly gain in its large-cap crypto index, along with US $6 billion. Spot Bitcoin ETF Flow That brought year-to-date net flows back into positive territory.
The growth extends beyond the value of cryptocurrencies. The value of tokenized equities rose 65.5% to nearly $3.2 billion, while open interest in decentralized perpetual futures hit a new record close to $26 billion tied to rising stakes in stocks, commodities, foreign currencies and pre-IPO shares.
“Page after page, it’s all the same: the most recent part of the chart is turning sharply upward,” Haugan wrote. “If you want to start a crypto spring, this is what you want to see.”
Crypto analysts are debating whether the market downturn is over. CryptoQuant said in September That technical and onchain indicators have confirmed a new Bitcoin bull market, while Ryan Lee, chief analyst at BitGate. told Cointelegraph That more indicators were needed to confirm a cycle bottom. Haugan pointed to ETF flows and onchain activity as additional signs of a possible recovery.
10 Large-Cap Cryptos Make Double-Digit Gains
Bitcoin (BTC) gained 42.3% in Q3, while Ether (ETH) and Solana (SOL) gained 69.1% and 59.2%, respectively, according to Bitwise.
All 10 components of the firm’s large-cap crypto index posted double-digit quarterly gains, with Chainlink ( LINK ) the top performer, up 97.6%.
“Three months ago, crypto was in the depths of depression,” Haugan said. “Prices, onchain activity, ETF flows—everything is down.”
Year-to-date performance of assets tracked in the Bitwise 10 Large Cap Crypto Index. Source: Bitwise
However, the rebound has not extended to every corner of the industry.
Shares of bitcoin miners Riot Platform and Hut 8 fell 26.4% and 25.4%, respectively, in Q3, while Galaxy Digital fell 16.8%, according to Bitwise.
The number of public companies holding bitcoin fell nearly 6% to 173 in the quarter, even as their combined holdings increased 0.5%, while the number of public companies holding ether fell from 40 to 35, even as their combined holdings increased.
Related: Crypto valuations could double as protocols link revenue to tokens: Bitwise CIO
Meanwhile, Bitwise’s large-cap crypto index was down 6.2% for the year through September despite strong quarterly gains.
The upcoming catalyst
Looking ahead, Bitwise said it expects the SEC’s innovation exemption to draw billions more in tokenized assets to blockchain.
“We believe Q4 moves tokenization from pilot to production. We expect the concession to draw billions more tokenized assets to blockchains like Ethereum, Solana, NEAR and others.”
Meanwhile, the growing perpetual futures market is expected to accelerate after venues such as HyperLiquid and Liter traded more than $6 trillion a year, up 42% from the same period a year ago.
“With regulatory support expected this quarter, we project the growing perp market to accelerate as U.S. investors begin to arrive,” Bitwise said.
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