Bitwise Chief Investment Officer Matt Hougan described the third quarter of 2023 as potentially "one of the best quarters in crypto’s history," citing a sharp rebound in crypto prices and growing onchain markets as signs of a "crypto spring." The firm’s large-cap crypto index saw a 46.4% gain, while US spot Bitcoin ETF inflows totaled $6 billion, pushing year-to-date net flows into positive territory.
The growth wasn’t limited to cryptocurrency prices. Tokenized equities rose 65.5% to nearly $3.2 billion, and open interest on decentralized perpetual futures hit a record near $26 billion. Hougan highlighted the upward trend in multiple charts, suggesting a strong start to a crypto recovery.
Not all sectors shared in the rebound. Shares of Bitcoin miners Riot Platforms and Hut 8 fell 26.4% and 25.4%, respectively, while Galaxy Digital dropped 16.8%. The number of public companies holding Bitcoin and Ether also declined, though their combined holdings slightly increased.
Looking ahead, Bitwise expects the SEC’s innovation exemption to drive billions more in tokenized assets onto blockchains like Ethereum, Solana, and NEAR. The firm also anticipates acceleration in the perpetual futures market, with over $6 trillion traded year-to-date across venues like Hyperliquid and Lighter.