Matt Hougan, CIO of Bitwise, says a wave of institutional interest in altcoins will arrive next year, largely due to potential regulatory clarity and an increase in the number of exchange-traded funds ( ETF).
In a new interview with Bloomberg, Hougan says institutional money is in the early stages of expanding to other crypto assets besides Bitcoin (BTC).
Hougan predicts that 2025 will be the year that institutional investors begin to incorporate more diversification into their cryptocurrency investment strategies, the same way they do in other asset classes like stocks or bonds.
“In fact, you already see it expanding. Many people were worried about the Ethereum ETFs, for example, which launched this summer and saw lukewarm inflows.
But in the last month or so, you’ve seen billions of dollars flowing into these products.
Once again, things that have happened in the past in crypto continue to happen. Historically, most people get into crypto through Bitcoin, then learn about Ethereum, then think about Solana. There is no reason to assume that institutions that have moved into Bitcoin will not move to other assets in the future.
In fact, I think in 2025 you will see an explosion of interest in space index strategies that provide diversified exposure to crypto. Of course, this is something we’ve been doing at Bitwise since 2017 when we launched this concept. I think 2025 is where this will become a common way to allocate this space, the same way it is for stocks, bonds, real estate and everything else.
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