Bitwise CIO Matt Hougan stated that institutional interest in altcoins will increase next year. Hougan stated that this increase will largely depend on the clarification of regulatory uncertainties and the emergence of more exchange-traded funds (ETFs).
Institutions’ Tendency towards Crypto Assets
In a new interview with Bloomberg, Hougan said institutional capital is investing in Bitcoin. $96,907.4 He said that he started to turn to other crypto assets as well. Going beyond Bitcoin to Ethereum 
$3,381.7 He expects an increase in the number of institutions considering investing in other cryptocurrencies such as and Solana.
Hougan predicts that 2025 will be the year institutions begin to diversify more into their crypto investment strategies. He notes that this approach will be applied in the same way as for other asset classes such as stocks or bonds.
“We have seen billions of dollars flowing into these products over the past month. “We believe that institutions entering Bitcoin will also turn to other assets in the future.”
Hougan thinks interest in index strategies that provide exposure to crypto from multiple angles will explode in 2025. He stated that Bitwise has been pioneering this concept since 2017 and that in 2025 this approach will become widespread as in other areas such as stocks and real estate.
Regulatory Factors and ETFs
Many who are still concerned about Ethereum ETFs have noted that ETFs launched this summer have seen billions of dollars flow into these products in the last month, despite initially receiving low inflows.
Expanding interest from institutional investors in the crypto market could lead to broader acceptance of crypto assets. These developments are considered positive signals for the future of the crypto market.
Increasing interest in crypto diversification may offer investors the opportunity to create more balanced and risk-distributed portfolios. This could contribute to a more stable growth of the crypto market.
Increasing interest from institutions in crypto assets could help the market become more mature and regulatory frameworks become clearer. This process can create a safer and more predictable environment for investors.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
