EddieJayonCrypto
22 Dec 24
Bitwise CIO Matt Hougan predicts a surge in institutional interest in alternative cryptocurrencies (altcoins) next year due to potential regulatory clarity and the introduction of more exchange-traded funds (ETFs). He anticipates that by 2025, institutional investors will diversify their crypto port...
Bitwise CIO Matt Hougan foresees a surge in institutional interest in alternative cryptocurrencies (altcoins) in 2025. This anticipation is driven by potential regulatory clarity and the introduction of more exchange-traded funds (ETFs). Hougan predicts that institutional investors will diversify their crypto portfolios similarly to traditional asset classes such as equities and bonds, with a focus on index-based strategies for diversified exposure to the crypto market.
Hougan emphasizes the growing trend of institutional money moving beyond Bitcoin to explore other crypto assets like Ethereum and Solana, indicating an impending shift towards broader crypto investment strategies. He notes that the institutional interest in altcoins is expected to increase next year, attributing this to potential regulatory clarity and the availability of more ETFs.
In an interview with Bloomberg, Hougan points out that institutional money is in the early stages of broadening out to other crypto assets beyond Bitcoin. He anticipates that 2025 will mark the year when institutional investors start integrating more diversification in their crypto-investing strategies, similar to their approach in other asset classes like equities or bonds.
Hougan also mentions the recent inflows of billions of dollars into Ethereum ETFs, highlighting the ongoing expansion of crypto investment beyond Bitcoin. He predicts an explosion of interest in index space strategies providing diversified exposure to crypto, positioning this as a mainstream way to allocate to the crypto space by 2025.