Bitcoin to outperform major assets with annualized returns of over 28% until 2035: Bitwise

Bitwise Chief Investment Officer (CIO) Matt Hougan stated in a Tuesday note that the company plans to release a ten-year forecast for Bitcoin's price, with an estimated growth rate of 28.3% annually.

Bitcoin to see 28% growth rate until 2035 as institutional demand rises

Bitwise Asset Management projects that Bitcoin will deliver annualized returns of 28.3% over the next decade, outpacing all major asset classes, Hougan said in a note to investors on Wednesday. The firm also expects Bitcoin's volatility to decline to 32.9% over the same period, although still high compared to traditional assets.

The data is an excerpt of Bitwise's upcoming long-term Bitcoin capital markets report, which will "provide data-driven forecasts of bitcoin's returns, volatility, and correlations over the next ten years," according to Hougan.

He highlighted that interest in the forecast among large investors has grown compared to when Bitwise began assisting professional investors with crypto opportunities in 2017.

Bitwise has already received a dozen requests this year, marking an increase compared to zero requests from earlier years, Hougan said, adding that most of these inquiries came from large national platforms overseeing assets in the billions and trillions of dollars.

"Twelve may not sound like much, but it is: Most of the new requests came from large national account platforms that handle hundreds of billions or trillions of dollars in assets. Multiply 12 by half a trillion dollars and you're talking about real money," he wrote.

The growing interest reflects a shift in how institutional investors view Bitcoin, not as a "one-off" asset, but a potential "core" holding within portfolios, Hougan adds.

Bitcoin's reputation as an asset class has evolved over the past year, particularly since the launch of US spot Bitcoin exchange-traded funds (ETFs) in January 2024. The funds have attracted over $54 billion in cumulative inflows in just over a year and a half, per SoSoValue data.

The rise of Bitcoin treasury companies, which collectively hold about $111.2 billion worth of BTC, has also bolstered interest in the top crypto.