tl;dr
Bitwise, a digital asset manager, remains optimistic about decentralized finance (DeFi) tokens despite a market lull. The company's CIO, Matt Hougan, sees potential in Layer-1 blockchains like Sui and Aptos and is considering launching ETFs for these tokens. Bitwise is actively pursuing crypto ETF a...
Bitwise, a digital asset manager, remains optimistic about decentralized finance (DeFi) tokens despite a market lull. The company's CIO, Matt Hougan, sees potential in Layer-1 blockchains like Sui and Aptos and is considering launching ETFs for these tokens. Bitwise is actively pursuing crypto ETF applications with a focus on diverse assets, including those popular in the DeFi space. Hougan believes a favorable regulatory environment could drive growth for DeFi tokens and projects. Bitwise aims to offer clients a range of asset options while prioritizing quality and client preferences.
The DeFi sector is “substantially undervalued,” Bitwise CIO Matt Hougan said in an interview with Decrypt, arguing Layer-1 blockchains such as Sui and Aptos “definitely tick the boxes” for courting institutional investors. He sees a case for issuers launching SUI and Aptos ETFs in the U.S., a development that may bring renewed investments into those altcoins. Bitwise is one of several investment firms that has filed a flurry of crypto ETF applications with federal regulators in the U.S. The spate of applications comes as the SEC has signaled its willingness to adopt a more crypto-friendly stance under recently elected President Donald Trump.
Bitwise itself is in the process of securing approval for single-asset ETFs that track XRP, Solana, and Dogecoin — tokens that are especially popular with DeFi proponents. Changing tides in the U.S. regulatory climate could boost DeFi tokens and the projects to which they are linked, according to Hougan. He believes that a new regulatory climate may allow utility tokens with value drivers to thrive, eliminating a major issue in DeFi—the pervasiveness of “squishy governance tokens.”
Although Bitwise is hardly “throwing spaghetti against the wall” when it picks assets to include in its funds, Hougan noted that Bitwise and other issuers aim to file for new ETFs often. The asset manager also listens to its clients when deciding which assets it should offer in ETF wrappers, aiming to give clients ample options for where to put their money. Hougan emphasized the importance of offering exposure to all kinds of assets, as long as those assets are not linked to rug pulls or scams.