Bitwise CIO Matt Hougan said institutional interest in altcoins will surge next year due to potential regulatory clarity and the rise of exchange-traded funds (ETFs).
In a new interview with Bloomberg, Hougan said institutional funding is in the early stages of expanding into other cryptocurrency assets besides Bitcoin (BTC).
Hougan predicts that 2025 will be the year that institutional investors begin to include more diversity in their cryptocurrency investment strategies, just as they do in other asset classes such as stocks and bonds.
“You’re already seeing it expand in practice. For example, many people were worried about the Ethereum ETF, which launched this summer and has seen lukewarm inflows.
But over the past month, we’ve seen billions of dollars flowing into the product.
Also, things that happened in cryptocurrency in the past continue to happen. Historically, most people got into cryptocurrency through Bitcoin, then discovered Ethereum and think of Solana. There is no reason to assume that institutions that have come into Bitcoin will not move to other assets in the future.
In fact, we believe that 2025 will see an explosion of interest in index space strategies that provide diversified exposure to cryptocurrencies. Of course, (that’s) what we’ve been doing at Bitwise since 2017, when we pioneered the concept. I think by 2025 this will be the mainstream way to allocate to this space, just like allocations to stocks, bonds, real estate and everything else.”
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