The Chief Investment Officer at Bitwise, Matt Hougan, has predicted a surge in institutional interest in altcoins, particularly in 2025. This is expected to be driven by regulatory clarity and the availability of exchange-traded funds (ETFs) that include a wider range of cryptocurrencies.
Institutional investors are already starting to expand their crypto investments beyond Bitcoin, with Ethereum and Solana being popular choices. Hougan believes that by 2025, there will be a significant increase in interest in index-based strategies that provide diversified exposure to the crypto market, similar to traditional asset classes.
Regulatory clarity and the launch of more ETFs are crucial factors in attracting institutional investors to the crypto market. As the crypto market matures, institutional investors are expected to employ more sophisticated strategies, including diversification across multiple cryptocurrencies. This shift reflects a growing acceptance of cryptocurrencies as a legitimate asset class.
The year 2025 could mark a new era for diversified crypto strategies, making them as common as traditional finance strategies. Institutional investors are projected to adopt index-based strategies that offer diversified exposure to the crypto market. This trend is driven by the increasing availability of regulatory clarity and the launch of more ETFs that include a wider range of cryptocurrencies.
With the growing acceptance of cryptocurrencies as a legitimate asset class, institutional investors are expected to diversify their crypto investments beyond Bitcoin. Ethereum and Solana are already gaining popularity among institutional investors, and this trend is likely to continue in the coming years.