Bitwise chief investment officer Matt Hougan says the cryptocurrency market could be entering a recovery after a strong third quarter. The asset manager points to rising prices, renewed demand for Bitcoin investment funds and growth in blockchain-based markets. However, some crypto-related stocks and company holdings did not share in the rebound.
Bitwise Reports 46.4% Rise in Major Crypto Index
In its October 8 market review, Bitwise reported that its 10 Large Cap Crypto Index gained 46.4% during the third quarter of 2026. All 10 cryptocurrencies in the index recorded double-digit gains. The increase followed three consecutive quarters of negative returns, according to the firm’s earlier review. The rebound came after losses in the first half of the year, when selling pressure affected major tokens.
Bitcoin rose 42.3% during the quarter, while Ether advanced 69.1% and Solana gained 59.2%. Chainlink recorded the largest increase among the index members, climbing 97.6%. Even after those gains, the index remained 6.2% lower for the year through September.
Hougan Points to Recovery but Stops Short of Certainty
Hougan described the quarter as potentially “one of the best quarters in crypto’s history.” He linked his assessment to higher prices, stronger investment flows and increased activity on blockchain networks. His reference to a “crypto spring” was a view about the possible direction of the market, not a confirmed return to sustained gains.
“That’s exactly what you want to see if you’re looking for the start of a crypto spring,” Hougan said. He contrasted the latest figures with the previous quarter, when prices, exchange-traded fund flows and blockchain activity were falling. Bitwise’s large-cap index had lost 15.4% in that period.
Bitcoin ETF Inflows and Tokenized Stocks Increase
U.S. spot Bitcoin exchange-traded funds attracted about USD 6 billion during the third quarter, according to Bitwise. August accounted for roughly USD 3.5 billion. The inflows returned net flows for 2026 to positive territory after earlier withdrawals. Such funds provide Bitcoin exposure through shares traded on traditional exchanges.
Meanwhile, the value of tokenized stocks rose 65.5% to nearly USD 3.2 billion. These products use blockchain systems to represent exposure to company shares. Open interest in decentralized perpetual futures, or the value of outstanding contracts, reached around USD 26 billion.
Trading increasingly covered stocks, commodities, currencies and shares of private companies. Open interest measures positions that traders have not yet closed, rather than total trading volume.
Mining Stocks Lag as Bitwise Looks to Q4
The stronger cryptocurrency prices did not lift every listed company in the sector. Riot Platforms shares fell 26.4% during the quarter, while Hut 8 declined 25.4% and Galaxy Digital lost 16.8%. The number of public companies holding Bitcoin dropped almost 6% to 173, although their combined holdings increased 0.5%.
Public companies holding Ether also decreased from 40 to 35, even as their total Ether holdings rose. Looking ahead, Bitwise expects a U.S. Securities and Exchange Commission innovation exemption to support further growth in tokenized assets.
It also expects U.S. participation in perpetual futures trading to expand. Bitwise said trading across venues including Hyperliquid and Lighter exceeded USD 6 trillion a year to date, up 42% from a year earlier. These projections depend on future market and regulatory developments.
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