Bitwise Says Q3 Crypto Gains Signal 'Crypto Spring'

Q3 marks sharp rebound for crypto markets

Bitwise chief investment officer Matt Hougan said the third quarter may have been "one of the best quarters in crypto's history," pointing to a strong rebound in prices and growing onchain activity as signs of a "crypto spring."

In its quarterly market review published Thursday, Bitwise reported a 46.4% quarterly gain in its large-cap crypto index. The fund also recorded $6 billion in US spot Bitcoin ETF inflows, bringing year-to-date net flows back into positive territory. A spot ETF is a traded fund that holds the actual cryptocurrency and lets investors gain exposure without directly buying the coin.

"Page after page after page, it's all the same: The most recent part of the chart is turning sharply upwards," Hougan wrote.

Key numbers from the quarter

• Bitcoin rose 42.3%, Ether gained 69.1%, and Solana climbed 59.2%
• All 10 holdings in Bitwise's large-cap crypto index posted double-digit gains, with Chainlink leading at 97.6%
• Tokenized equities — stocks represented as digital tokens on blockchains — rose 65.5% to nearly $3.2 billion
• Open interest on decentralized perpetual futures hit a record near $26 billion
• The large-cap index remains down 6.2% for the year through September

Analysts debate whether recovery is confirmed

Crypto analysts remain divided on whether the market slump is truly over. Data firm CryptoQuant said in September that technical and onchain indicators confirmed a new Bitcoin bull market. But Bitget chief analyst Ryan Lee told Cointelegraph that more indicators are needed to confirm a cycle bottom.

Hougan pointed to ETF flows and onchain activity as additional evidence of a potential recovery.

Miner stocks and corporate holders lag

The rebound did not reach every part of the industry. Shares of Bitcoin miners Riot Platforms and Hut 8 fell 26.4% and 25.4%, respectively, during Q3. Galaxy Digital dropped 16.8%.

The number of public companies holding Bitcoin fell almost 6% to 173, though their combined holdings grew 0.5%. The number of public companies holding Ether fell to 35 from 40, even as their combined holdings increased.

What Bitwise expects next

Bitwise expects the SEC's innovation exemption to draw billions more tokenized assets onto blockchains such as Ethereum, Solana, and NEAR during Q4. The firm also anticipates the growing perpetual futures market to accelerate, projecting more US investor participation as regulatory clarity improves. More than $6 trillion was traded year-to-date across venues like Hyperliquid and Lighter, up 42% from the same period a year earlier.

Sources

• Cointelegraph

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