Matt Hougan, CIO of Bitwise Asset Management, predicts a significant shift in institutional crypto investing. He believes 2025 will be the year institutions diversify their crypto holdings beyond Bitcoin, mirroring their strategies in traditional markets like stocks and bonds.
Altcoins Gaining Traction
Hougan points to growing institutional interest in altcoins, fueled by increased regulatory clarity and the launch of several cryptocurrency exchange-traded funds (ETFs). While initial ETF inflows were slow, recent months have seen billions of dollars pour into these products. He argues this follows a typical pattern: investors often start with Bitcoin, then explore Ethereum, and eventually consider other altcoins like Solana. This suggests that institutions already invested in Bitcoin are likely to expand their portfolios into other crypto assets.
2025: The Year of Diversified Crypto Investing
Hougan forecasts a surge in popularity of diversified crypto index funds in 2025. He sees this as a natural progression, comparing it to the established diversification strategies used in traditional asset classes. Bitwise, he notes, has been offering such strategies since 2017. He believes 2025 will mark the mainstream adoption of this approach within the crypto investment world.
