Bitcoin might begin to lose its status as a unstable asset.

In keeping with Bitwise Asset Administration’s Matt Hougan, the cryptocurrency’s wild worth swings have come down considerably over the previous decade.

“What’s driving the bitcoin market proper now is an easy demand-supply imbalance,” the agency’s chief funding officer advised CNBC’s “ETF Edge” on Monday. “Now we have this large new supply of demand from these ETFs, and now we have provide that is inelastic.”

On Jan. 11, the primary bitcoin exchange-traded funds started buying and selling. Since then, the asset is up greater than 50%. Bitcoin hit an all-time excessive this week of slightly below $74,000.

But, Hougan acknowledges it might not be for everybody.

“It strikes round loads. Some folks discover it obscure,” Hougan mentioned.

Whereas Bitwise is betting on bitcoin’s progress, ProShares has an ETF trying to revenue from losses with its Quick Bitcoin Technique ETF. It is down 42% to this point this 12 months and has plummeted virtually 70% over the previous 12 months.

“To cite Mark Twain, ‘The experiences of our demise have been fairly exaggerated,'” ProShares’ Simeon Hyman advised CNBC. “We’re completely satisfied to be right here, and we predict we’re serving as a key different.”

Hyman, the agency’s world funding strategist, notes bitcoin’s historic power has been occurring loads longer than the launch of the spot bitcoin ETFs.

“That is the month of the anniversary of the collapse of crypto-linked monetary establishments. Final 12 months, bitcoin was going up then, too,” Hyman mentioned. “I believe there are longer-term of us who’re beginning to are available in for asset allocation and diversification functions.”

Hyman’s ProShares additionally operates a long-bitcoin ETF: ProShares Bitcoin Technique ETF. It is up 55% since Jan.1 and has gained 111% previously 12 months.

As of Friday night, bitcoin is up 180% over the previous 12 months.