Institutions to Shift Toward Altcoins by 2025, Says Bitwise CIO

Bitwise CIO Matt Hougan predicts that institutional interest in altcoins will gain momentum next year, driven by expected regulatory clarity and the emergence of more exchange-traded funds (ETFs).

Speaking to Bloomberg, Hougan emphasized that institutional investors are beginning to diversify beyond Bitcoin (BTC). He anticipates that 2025 will mark a significant shift in how these investors approach crypto, incorporating diversification strategies similar to those used in traditional asset classes like stocks and bonds.

Hougan noted the growing adoption of Ethereum ETFs, which saw a slow start after their launch but have recently attracted billions in inflows.

He sees this as part of a familiar trend: investors often start with Bitcoin, then move to Ethereum, and eventually explore other assets like Solana.

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By 2025, Hougan expects index-based crypto investment strategies to become a standard method for institutions to gain diversified exposure to the market.

Bitwise, he pointed out, has been pioneering this approach since 2017, and he believes it will soon be as mainstream as similar strategies in equities, real estate, or fixed income.

Alexander Zdravkov