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Tag: Bitwise

  • Bitwise forecasts Bitcoin as best-performing asset over next decade

    Bitwise forecasts Bitcoin as best-performing asset over next decade

    Bitwise projects Bitcoin to deliver 28% annual returns over the next decade.

    • Bitwise projects Bitcoin to deliver 28% annual returns over the next decade.
    • Institutions now view Bitcoin like equities and bonds for portfolio allocation.
    • Spot ETFs and corporate treasuries fuel Bitcoin’s growing long-term adoption.

    Bitwise Asset Management expects bitcoin to deliver the strongest returns of any major asset class over the next ten years, projecting a compound annual growth rate of 28% with gradually declining volatility.

    The forecast was shared in a new memo previewing the firm’s forthcoming Bitcoin Long-Term Capital Market Assumptions report.

    Institutional demand spurs framework

    The report, authored by Bitwise Chief Investment Officer Matt Hougan, is targeted at large platforms and professional allocators that are increasingly treating bitcoin as a “core” portfolio consideration.

    Hougan notes that the shift follows the launch and widespread approval of spot bitcoin exchange-traded funds (ETFs), which have opened the asset class to mainstream retirement accounts and wealth platforms.

    Interest in long-term planning has grown markedly.

    Hougan said Bitwise received a dozen requests this year for long-term assumptions around bitcoin, compared with none between 2017 and 2024.

    In his view, this marks an inflection point: institutions are now evaluating bitcoin in the same way they assess equities, bonds, and other traditional assets.

    Favourable comparisons with traditional markets

    While the full report is yet to be published, the preview states that bitcoin’s projected returns, volatility profile, and correlations compare favourably with established asset classes.

    Bitwise characterises bitcoin’s correlations with other major assets as “low”, falling between −0.5 and 0.5, which many allocators value for diversification benefits.

    The asset manager’s positioning of bitcoin’s outlook draws parallels with annual capital-market forecasts issued by large Wall Street firms such as JPMorgan, PIMCO, BlackRock, and Vanguard.

    These outlooks help institutions determine long-term strategic allocations across asset classes including equities, fixed income, real estate, and alternatives.

    Hougan argues that similar guidance is now warranted for digital assets, given their growing maturity and integration into mainstream investment products.

    Growing Onchain and corporate holdings

    Since spot bitcoin ETFs launched in January 2024, they have quickly gained traction.

    On-chain holdings tied to these ETFs have grown to represent almost 7% of bitcoin’s fixed 21 million supply, with assets under management exceeding $146 billion, according to data from The Block.

    Corporate treasuries have also expanded their exposure.

    Publicly traded companies, led by MicroStrategy with a holding of 629,376 BTC, have collectively accumulated more than $80 billion worth of bitcoin.

    These acquisitions have been financed largely through capital market activities, including equity offerings and convertible debt issuance.

    Bitwise’s full Bitcoin Long-Term Capital Market Assumptions report is expected later this week.

    It will provide detailed methodology and quantitative analysis, alongside side-by-side comparisons with forecasts for traditional asset classes from leading global asset managers.

    For Bitwise, the release marks a bid to position bitcoin within the same framework used for decades to evaluate traditional investments.

    For institutions, it reflects a growing acceptance of bitcoin not as a speculative play, but as a serious allocation option with defined risk and return expectations.

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  • Bitwise CIO bats for diversified crypto investment, compares Bitcoin to Google

    Bitwise CIO bats for diversified crypto investment, compares Bitcoin to Google

    Crypto news today: Bitcoin nears all-time high; ETH, DOGE, PEPE, ATOM show bullish signs

    • Bitwise CIO makes a case for diversified crypto investment in different assets such as Bitcoin, Ethereum, Solana, and Avalanche.
    • He compares it to 2004, when Google was the leading internet company, though Netflix made the most money for investors in a 21-year period.
    • He equates Blockchain to the internet, saying the technology can be used for different purposes, like the internet.

    Bitwise CIO Matt Hougan makes the case for diversified crypto investment, even as he hails Bitcoin as an important asset. 

    Hougan said that while “Bitcoin is the king of crypto assets”, citing that it is the largest cryptocurrency, while having the most liquidity and being well known.

    He says Bitcoin is the only digital asset that has a shot at being an important global currency. He said the asset is similar to digital gold. 

    Bitwise’s CIO said that despite the important status of Bitcoin, it is wise to invest in other cryptocurrencies, making a comparison with the historical performance of internet companies. 

    Google and Netflix

    Hougan asks the investors to put themselves in 2004. 

    Google was the leading internet company then, and investors would have been tempted to put money into Google as it is the “dominant player”, Hougan said. 

    He points out that while Google has done exceptionally well in the next 21 years, gaining over 6300%, investing in other internet companies would have served investors well, as the internet is a “general purpose technology” with uses in retail, social media, and software.

    Investing in companies such as Netflix, Amazon, and Salesforce, which are leading players in other verticals of the internet, would also go on to pay huge gains for investors. 

    Netflix is the highest performing stock in this period with gains of over 50,000%. 

    Amazon and Salesforce also rack up 10,000% and 7,000% gains, respectively, leaving Google as the worst-performing stock among this group during this time. 

    Blockchain is similar to the Internet

    Hougan compares Blockchain technology to the internet, saying the former is also a general-purpose technology with different crypto assets used for different purposes. 

    “You can use a blockchain to create a better form of money (Bitcoin) or to create a programmable network for transferring real-world assets” (Ethereum, Solana, Avalanche).

    You can build new types of applications (DeFi, DePin) or middleware that services other blockchains (Chainlink). 

    You can also build traditional businesses that support the crypto economy (Coinbase, Circle, Marathon Digital)”, Hougan writes.

    Power of passive investing

    It is now a regular occurrence that passive funds are trumping actively managed funds. 

    Hougan points this trend out.

    “Over the past 20 years, actively managed US equity funds have underperformed their benchmark indexes 97% of the time”, he said. 

    It is important to invest in the big picture rather than picking winners, Hougan writes. 

    He adds that after studying history, it makes sense to own a basket of cryptocurrencies such as Bitcoin, Ethereum, Solana, and Chainlink. 

    In the last 4 years, different crypto assets emerged as the number one performer in different years.

    Hougan demonstrates this with data. He points out that it is impossible to predict cryptocurrency winners in 2030. 

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  • Bitwise files new ETF targeting firms with large Bitcoin holdings

    Bitwise files new ETF targeting firms with large Bitcoin holdings

    • The Bitwise Bitcoin Standard Corporations ETF would invest in businesses that “hold at least 1,000 Bitcoin”
    • Companies need to have a market capitalization of at least $100 million to be included in Bitwise’s proposed ETF
    • KULR Technology Group started its Bitcoin Treasury strategy with the purchase of 217.18 Bitcoin for $21 million

    Bitwise has filed a proposal with US regulators to launch a new exchange-traded fund (ETF) to invest in publicly traded companies that hold substantial Bitcoin reserves.

    Under the Bitwise Bitcoin Standard Corporations ETF, the ETF issuer would invest in businesses that “hold at least 1,000 Bitcoin in its corporate treasury,” according to a December 26 filing with the US Securities and Exchange Commission (SEC).

    To further qualify to be included in the ETF, companies need to have a market capitalization of at least $100 million, an average daily liquidity of $1 million or more, and a public free float of less than 10%.

    The proposed ETF from Bitwise would assign stock weight based on the market value of a company’s Bitcoin holdings, ensuring this is capped at 25%.

    Reaching new heights

    The news comes as Bitcoin has experienced a rise in value following the US election win of President-elect Donald Trump. At its peak, Bitcoin reached a new all-time high above $107,000 earlier this month. In a client memo in November, Bitwise’s CIO Matt Hougan said the US election was either going to be a “speed bump” or a “wind gust” for the crypto market.

    Significantly, in recent weeks, more companies have been buying Bitcoin to push up stock prices. On December 23, MicroStrategy announced on X that it now holds 444,262 Bitcoin after acquiring a further 5,262 Bitcoin for $561 million.

    In other related news, KULR Technology Group announced on December 26 that it had started its Bitcoin Treasury strategy with the purchase of 217.18 Bitcoin for $21 million.

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  • Bitwise CIO: US election is going to be a speed bump or wind gust for crypto

    Bitwise CIO: US election is going to be a speed bump or wind gust for crypto

    US Dollar and Bitcoin placed together to show investment concept
    • Bitcoin’s value has risen over 400% between 2020 and 2024
    • Solana has increased in value by nearly 4,500% from $1.49 to around $166 in four years
    • This trajectory of positivity will continue beyond the 2024 US elections, according to Matt Hougan

    Bitwise’s CIO has said while Washington can alter the trajectory of the crypto market by speeding things up or slowing them down, it can’t stop it.

    In his latest client memo, Matt Hougan wrote about crypto in an election year, claiming that crypto has already won, regardless of who becomes the next President of the United States.

    Comparing the state of the crypto market from November 2020 to November 2024, Hougan questioned whether things are better or worse since the last time Americans went to the polls.

    Despite several lawsuits from the US Securities and Exchange Commission (SEC) – notably against Binance, Coinbase, Cumberland DRW, Kraken, and Ripple – the crypto industry has made significant progress.

    A four-year difference

    Looking between the two US elections, Hougan points out that Bitcoin was trading at $13,677 in November 2020. Fast-forward to November 2024 and Bitcoin is valued at around $69,492, indicating a 408% change.

    Ethereum has also seen a positive increase from its humble $388 in 2020 to its now $2,492 in the runup to the 2024 US election. However, it’s Solana that has seen a major increase in price rising nearly 11,000% from $1.49 in 2020 to around $166 in 2024.

    Turning to assets under management (AUM), Hougan shows that stablecoin AUM rose from $3.87 billion in November 2020 to $177.83 billion in November 2024, representing a near 4,500% change.

    Decentralized finance (DeFi) total value locked (TVL) also experienced a healthy boost, jumping from $9.57 billion in 2020 to $139.3 billion in 2024.

    “We focus so much in crypto on the moment-by-moment movement of prices that we often lose sight of the long-term trends,” Hougan wrote. “The presidential election provides a nice opportunity to step back and see how far we’ve come.”

    What next?

    So much has already happened in the crypto market over four years, but will that continue as the market goes beyond the 2024 US election?

    In Hougan’s view, the answer is yes. Regardless of who becomes the next POTUS, Hougan said – among other things – that spot crypto exchange-traded funds (ETFs) inflows will continue, stablecoins will continue to grow, Wall Street will continue to embrace tokenization and real-world assets, blockchains will get faster and cheaper, and real-world applications such as Polymarket will gain mainstream adoption.

    “What happens in Tuesday’s election matters, particularly in the short term,” said Hougan. “But as I see it, over the long term Tuesday will prove to be something between a speed bump and a wind gust. Neither is going to stop this train.”

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  • Bitwise CIO: Three things are needed for Bitcoin’s “melt-up” to $80,000 in Q4

    Bitwise CIO: Three things are needed for Bitcoin’s “melt-up” to $80,000 in Q4

    An image of golden bitcoins
    • Matt Hougan has said three factors will push Bitcoin to $80,000 by the end of 2024
    • Hougan indicated that the US election is a big deal for crypto
    • Altcoins could also help bolster the melt-up case for Bitcoin achieving new highs

    Bitwise’s CIO has indicated three things that could see Bitcoin achieving highs of $80,000 by the end of 2024.

    In a client memo, Matt Hougan said that the US election, the economy, and no negative crypto surprises are what may see a “melt-up” of Bitcoin to trade above $80,000 during the last quarter of 2024.

    At the end of 2023, Bitwise predicted that Bitcoin would reach $80,000. He also indicated that spot Bitcoin exchange-traded funds (ETFs) will be approved.

    In his latest memo, Hougan stood by his belief that Bitcoin will reach all-time highs. Writing about the US election, the CIO stated that while a Republican win would be good for the crypto market “given the GOP’s strong and growing advocacy for the space,” the election is “more nuanced on the Democratic side.”

    He added that the Democrats have “disparate views on crypto” from Senator Elizabeth Warren’s “Anti-Crypto Army” to Representative Ritchie Torres’ deep support of the market.

    “To thrive, bitcoin doesn’t need politicians,” Hougan said. “It just needs them to get out of the way. And barring a Democratic sweep of both houses of Congress and the White House, I suspect they will, with the Democrats taking a more neutral approach to the industry.”

    Recent data shows that former US President Donald Trump leads the election against Vice President Kamala Harris on Polymarket, the decentralized prediction market platform.

    Lack of trust

    Turning to the economy, Hougan stated that the US Federal Reserve’s rate cuts by 50 basis points and China releasing two trillion yuan in economic stimulus in late September fueled the crypto rally.

    Hougan added that the market expects a further 50 basis points by the end of 2024 from the Federal Reserve and additional fiscal stimulus in China.

    Looking to his third point, Hougan indicated that a Bitcoin rally to $80,000 would be achieved if there are no major surprises, no lawsuits, and no locked coins entering the market. However, he noted that the crypto industry is full of surprises that have impacted the market.

    “Over the past few quarters, the release of previously locked-up bitcoin from failed exchange Mt. Gox and from government coffers has contributed to keeping us range-broad,” he said.

    Altcoins could help

    In Hougan’s view, aside from the three factors above, a broader rally in crypto will help seal the deal of Bitcoin reaching $80,000.

    “Bitcoin doesn’t need Ethereum, Solana, or novel altcoins for its long-term success,” he added. “But if we’re going to get a full-on melt-up in the short-term – say, a rip to $100,000 in just a few months – it would help to have a bit of pro-crypto sentiment sweep the market.”

    While he believes those crypto “animal spirits” have been in short supply during 2024, he sees them rising in areas such as stablecoins and projects including Sui, Aptos, and Monad.

    “Strong and sustained momentum in these areas would bolster the melt-up case,” Hougan said.

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  • Bitwise and VanEck to donate 10% ETF profits following SEC’s spot Bitcoin ETFs approval

    Bitwise and VanEck to donate 10% ETF profits following SEC’s spot Bitcoin ETFs approval

    • SEC approves spot Bitcoin ETFs: A historic moment for mainstream crypto integration.
    • Bitwise and VanEck donate 10% ETF profits to Bitcoin development: Philanthropy meets finance.
    • Meme Moguls emerges as the world’s first meme-backed stock market, aiming for 100x growth.

    After the US Securities and Exchanges Commission’s (SEC) spot Bitocin approval, Bitwise, a major asset management player, has declared its intention to donate 10% of the profits from its recently approved Bitcoin ETF, BITB, to the development of Bitcoin’s open-source ecosystem.

    Bitwise stated that its Bitcoin ETF $BITB would begin trading on 1/112024 with a 0% fee through 7/10/24 (on the fund’s first $1B in assets; 0.20% after).

    This philanthropic move follows a similar commitment from VanEck, adding a new dimension to the intersection of traditional finance and cryptocurrency. Meanwhile, the emergence of Meme Moguls, a crypto platform integrating memes with trading, promises a unique venture in the crypto space.

    SEC approves spot Bitcoin ETFs

    In a historic move, the US Securities and Exchange Commission approved spot Bitcoin ETFs, marking a monumental moment in the financial world. This approval opens the floodgates for investors to directly participate in the cryptocurrency market through exchange-traded funds, providing a more regulated and accessible avenue for BTC investment.

    This decision triggered a surge in Bitcoin prices, briefly touching the $47,000 mark. Analysts anticipate increased capital inflow into the cryptocurrency space as investors, both institutional and retail, explore these newly approved financial products.

    As the market speculates on potential pullbacks, the SEC’s endorsement signifies a growing acceptance and integration of cryptocurrencies into mainstream financial instruments.

    Bitwise and VanEck 10% profit donation for Bitcoin development

    Bitwise’s commitment to donating 10% of BITB profits to Bitcoin development echoes a similar initiative by VanEck, another prominent financial institution. Both companies pledge to direct a percentage of their ETF profits to support the open-source development of Bitcoin, showcasing a shared vision for the cryptocurrency’s sustained growth.

    Bitwise, having filed for a spot Bitcoin ETF five years ago, sees the recent approval as a significant milestone. The company envisions BITB as the ETF best suited for the evolving crypto landscape, and this philanthropic endeavour aligns with its dedication to fostering a robust Bitcoin ecosystem.

    These donations will benefit organizations such as Brink, OpenSats, and the Human Rights Foundation, emphasizing a commitment to diverse causes within the Bitcoin community. Importantly, these contributions come with no strings attached, ensuring a transparent and altruistic approach to supporting the foundational aspects of the Bitcoin network.

    Meme Moguls: where to trade memes

    On another front, Meme Moguls introduces a novel concept by merging memes with a trading ecosystem. Positioned as the world’s first meme-backed stock market, Meme Moguls aims to leverage the power of memes for financial gains. The platform offers diverse meme-inspired assets, a trading platform, a fantasy trader game, a casino, and a metaverse world known as Mogul Land.

    Participants can accumulate $MGLS tokens by engaging with the platform, staking tokens, and actively trading meme-inspired assets. With a focus on becoming the next 100x token, Meme Moguls aims to create millionaires within the first three months of launch. The ecosystem’s tokenomics, with 60% allocated to the presale, indicates a strategic approach to fueling the platform’s growth.

    Is Meme Moguls (MGLS) a good investment?

    As the cryptocurrency market continues to witness innovative ventures, potential investors may ponder whether Meme Moguls (MGLS) is a worthy addition to their portfolios especially now that the US SEC has approved spot Bitcoin ETFs for trading.

    The platform’s unique features, including a fantasy trader game, a casino, and the promise of creating millionaires, contribute to its appeal. However, as with any investment, individuals are advised to conduct thorough research, considering the inherent risks associated with the cryptocurrency market.

    To invest in the Meme Moguls (MGLS) token, you can visit the official website where the token’s presale is currently ongoing. The presale is currently in its fourth stage and the $MGLS token is going for   $0.0027.

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