Bitwise CIO Matt Hougan says a wave of institutional interest in altcoins is coming next year, largely due to potential regulatory clarity and more exchange-traded funds (ETFs).
In a new interview with Bloomberg, Hougan says that institutional money is in the early stages of broadening into other crypto assets beyond just Bitcoin (BTC).
Hougan predicts that 2025 will be the year that institutional investors will begin to incorporate more diversification into their crypto investment strategies, in the same way they do in other asset classes such as stocks and bonds.
“You can actually see it getting broader. For example, many people were concerned about the Ethereum ETFs, which launched this summer and saw tepid inflows.
But in the last month you’ve seen billions of dollars pouring into those products.
Again, the things that have happened in crypto in the past continue to happen. Historically, most people enter crypto through Bitcoin, and then they discover Ethereum, and then they think of Solana. There is no reason to believe that the institutions that started with Bitcoin won’t move to other assets in the future.
In fact, I think that in 2025 you will see an explosion of interest in index space strategies that provide diversified exposure to crypto. Naturally, [that is] something we have been doing at Bitwise since 2017, when we pioneered that concept. I think by 2025 this will become a mainstream way to allocate this space, the same way it is with stocks, bonds, real estate and everything else.”
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