Bitcoin could be the top-performing major asset over the next ten years, according to Bitwise Asset Management. In a preview of its upcoming Long-Term Capital Market Assumptions, Bitwise forecasts a 28% compound annual growth rate (CAGR) for Bitcoin, with volatility expected to steadily decline.
The firm’s Chief Investment Officer, Matt Hougan, says Bitcoin is shifting from speculative fringe asset to a mainstream investment tool, especially as institutional interest soars.
Institutional Demand for Bitcoin Is Surging
One of the most notable developments is the sharp increase in institutional demand. From 2017 to 2024, Bitwise received zero institutional requests for long-term Bitcoin allocation models. This year alone, they’ve received over a dozen.
This marks a major turning point: Bitcoin is now being considered a “core” portfolio holding by professional allocators, largely due to the approval of spot Bitcoin ETFs earlier in 2024. These financial products have made it easier for institutions to gain secure, regulated exposure to the digital asset.
Bitcoin’s Diversification Power Is Drawing Attention
Bitwise also highlights Bitcoin’s low correlation with traditional asset classes like stocks, bonds, and real estate. This makes it a powerful diversification tool in multi-asset portfolios—something that institutional investors highly value. The memo positions Bitcoin alongside traditional long-term asset class forecasts from financial giants such as JPMorgan, PIMCO, BlackRock, and Vanguard.
Currently, over $146 billion is invested in Bitcoin ETFs, and nearly 7% of the total Bitcoin supply is now held on-chain by these funds. This demonstrates growing confidence in Bitcoin as a store of value and investment-grade asset.
Bitwise is expected to release its full report later this week, providing detailed methodology, comparative analysis with Wall Street peers, and further insights into Bitcoin’s evolving role in global portfolios.
