Bitwise's Chief Investment Officer, Matt Hougan, believes that a wave of institutional interest in altcoins is on the horizon. He thinks this shift will happen next year, mainly due to clearer regulations and more exchange-traded funds (ETFs) becoming available.
In a recent chat with Bloomberg, Hougan shared his insights. He pointed out that institutional money is starting to explore a broader range of crypto assets beyond just Bitcoin (BTC). This is an exciting development.
Hougan predicts that 2025 will be a pivotal year. He expects institutional investors to adopt more diversified strategies in their crypto investments. This is similar to how they approach traditional assets like stocks and bonds.
He noted that we’re already seeing signs of this trend. Initially, there were concerns about Ethereum ETFs launched this past summer, which didn’t attract much investment at first. But in the last month, billions of dollars have flowed into those products. That’s a significant change.
Historically, most people enter the crypto world through Bitcoin. After that, they often discover Ethereum and then consider other options like Solana. Hougan is confident that institutions that started with Bitcoin will likely explore other assets as well.
He emphasized that 2025 could see a big rise in interest for index strategies that offer diversified exposure to the crypto market. Bitwise has been leading this approach since 2017, when they first introduced the concept. Hougan believes that by 2025, this method of investing in crypto will be as common as investing in stocks, bonds, and real estate.