The chief investment officer of crypto asset management firm Bitwise, Matt Hougan, says traditional finance (TradFi) companies are on the hunt for higher returns in the cryptocurrency space.

In a new interview on The Wolf of All Streets, Hougan says that after making “tons of money” in Bitcoin exchange-traded funds (ETFs), TradFi firms are now seeking alternative opportunities in the industry.

“They made all this money. All this money flowed into Bitcoin. The price went up a 140%. And what are they going to do?

They’re going to rotate into like Kellogg’s [stock]? No, they’re going to rotate into Circle and Ethereum and treasury companies. And now ETH treasury companies. And now Solana treasury companies…

It’s going to go all the way. It’s altseason in TradFi for sure.”

The Bitwise CIO says the trend of investing in crypto treasury companies is in an early phase. According to Hougan, the trend is only going to accelerate in the coming months.

“And I know that’s counter to the media narrative, which feels like we’re peak bubble, we’re, you know, March 2000 in the internet. But we’re not. We’re 1998. Like, people are still just getting excited.

The amount of flow that comes through my inbox is incredible. And if you’re bullish about crypto generically, why would you think this trend stops? If I think Bitcoin is going to $200,000, do I think this treasury trend increases or decreases? It’s almost like a self-reinforcing loop until it gets overblown. And I don’t think we’re there yet.”

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Matt Hougan, the chief investment officer (CIO) of crypto asset management firm Bitwise, says concern over US dollar weakness is creating one massive Bitcoin (BTC) trend.

In a new interview on CNBC Television, Hougan says that more public companies are buying Bitcoin to hold on their balance sheets as a hedge against the declining strength of the dollar due to money printing and other factors.

“We think this is a megatrend that’s going to accelerate into the future. One [reason], of course, is increased worries about the dollar. Corporations globally are sitting on record amounts of cash and what they’ve historically done is park it in short-term US Treasuries or, in fact, in cash accounts. But with the huge money printing and growing deficits, that no longer seems like a valid approach. They need another way to protect their wealth from degradation and they are turning to the best horse in that race, which is Bitcoin.”

Hougan predicts that publicly traded companies with Bitcoin treasuries will one day number in the thousands as investors also start to favor companies employing the strategy.

“The investing audience has just recognized this is a positive strategy. And so companies are being rewarded for taking this bold step of putting Bitcoin on their balance sheet. We think there will ultimately be thousands of companies that do this. We think we’re in inning one or two of this megatrend period, but you’re seeing it accelerate over time. It’s very exciting.”

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The chief investment officer (CIO) of Bitwise, Matt Hougan, is leaning bullish on Bitcoin (BTC) amid the crypto king’s 20% gain over the past month.

In an appearance on the David Lin YouTube channel, Hougan says various fundamental catalysts could drive the price of Bitcoin up by over 95% from the current level in months.

“Our prediction is that Bitcoin is going to eclipse over $200,000 by the end of the year. What’s happening right now is you have a huge amount of good news in Bitcoin. You have a US strategic reserve where the government now owns Bitcoin. You have improvements on the regulatory front, you have institutional adoption.”

According to the Bitwise CIO, the prevailing macroeconomic environment has held Bitcoin back from rallying more strongly.

“You may be wondering, why aren’t prices higher? The reason is we’ve had a bunch of economic uncertainty that’s caused not just Bitcoin but all risky assets to fall. Stocks are down substantially. So the market has dipped but I think over time, as that economic volatility subsides, you’re going to see all that good news catch up to Bitcoin and it’s going to propel it to new all-time highs and indeed above $200,000 for the year.”

On factors that increase the odds of Bitcoin reaching the $200,000 price target, Hougan says,

“Bitcoin’s price is set by supply and demand, and we all know the supply, right. There will only be 21 million, we only make 165,000 new ones a year. So you have to watch the demand.

The three things to watch: are [exchange-traded funds] ETFs gaining inflows? Are corporations like MicroStrategy and Metaplanet continuing to buy Bitcoin? And are governments buying Bitcoin? If those three things happen, I think the $200,000 target is a lock.”

Bitcoin is trading at $102,695 at time of writing.

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Hougan noted in a March 5 statement that the market reacted negatively to President Trump’s announcement because it included a mix of large and small cryptocurrencies.

President Trump’s policies often shift over time, and Hougan pointed out that the current reserve plan may not be final. He suggested that the upcoming White House crypto summit could influence its structure as major industry figures provide input.

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If the US moves forward with its crypto reserve, it could encourage other nations to start holding Bitcoin as well, Hougan added. He also expects that once the government acquires crypto, it will hold onto it long-term, similar to how it manages gold reserves.

On March 2, President Trump initially stated that the reserve would include Solana
SOL


$150.74

After the dust settles, I suspect the final reserve will be nearly entirely Bitcoin, and it will be larger than people think.

Hougan also questioned why certain altcoins were included, suggesting that adding assets like Cardano “feels more calculating than strategic”. However, despite what he called a “flawed rollout,” Hougan believes the market is misreading the situation. He noted:

In the end, this is bullish.

Meanwhile, El Salvador’s President, Nayib Bukele, recently dismissed IMF demands to stop buying Bitcoin. What did he say? Read the full story.

The opportunities in altcoins are probably bigger and more plentiful than ever before, according to Bitwise chief investment officer Matt Hougan.

In a new note to investors, Hougan says that the situation for altcoins “is more complex” than it was in previous bull markets since there isn’t any major new application driving interest like in 2020 or 2017.

Hougan says the main narrative in altcoins right now is memecoins, which has turned out to ultimately have been a short-term casino environment that lacks substance for serious investors.

However, the investor says long-term, “the setup for altcoins is stronger than at any point in history.”

“For the past four years, altcoins have largely been in a regulatory gray zone, with the SEC (Securities and Exchange Commission) alleging that most are illegal securities offerings. This has stunted real-world adoption and kept large firms and the best developers from building in the space.

All that has been reversed. Today, the US has made the growth of stablecoins a national priority, which will support the growth of Ethereum and Solana. Today, the largest institutions in the world feel safe building on crypto, which will bring DeFi (decentralized finance) applications to the masses.

If you squint, you can see evidence of this shift in things like stablecoin AUM (assets under management), which recently hit an all-time high, or in new projects like Ondo Finance’s recent move to tokenize all stocks and ETFs (exchange-traded funds) in the U.S. That project would never have gotten off the ground under the past administration.

In a year or two, my guess is that you’re not going to have to squint to see the transformation in altcoins; the impact will be self-evident. And overwhelming.”

Hougan also highlights that sentiment in crypto is extremely low right now, and while it’s hard to identify a specific catalyst for price expansion, he says it’s “harder to imagine a scenario where the market isn’t significantly bigger in the next few years.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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