Matt Hougan, Chief Investment Officer (CIO) at Bitwise Asset Management, has highlighted three key crypto investment areas with strong growth potential. These include Ethereum (ETH) and other Layer 1 blockchains, super-apps like Coinbase, and decentralized finance (DeFi).
His insights follow a pivotal speech by US Securities and Exchange Commission (SEC) Chairman Paul Atkins.
The SEC’s Crypto Strategy: Bitwise CIO Uncovers the Most Promising Bets
On July 31, BeInCrypto reported that Chairman Atkins highlighted the SEC’s new initiative, ‘Project Crypto.’ This aims to position the US as the global crypto asset and blockchain technology leader.
The initiative focuses on modernizing regulations, supporting innovation, onshoring crypto businesses, and creating a favorable environment for DeFi and super-apps.
In his latest memo, Hougan referred to the speech as ‘the most bullish’ crypto document.
“The most bullish document I’ve read on crypto wasn’t written by some yahoo on Twitter. It was written by the chairman of the SEC,” he said.
According to him, the speech offers a clear roadmap for investment strategies over the next five years.
“It’s like the chairman of the SEC took all the best ideas crypto supporters have been promoting for the past decade and packaged them in a single speech, along with details on how the SEC can actually make them happen,” Hougan remarked.
He outlined three key crypto investment opportunities that stand to benefit from the SEC’s newly outlined vision. The first is Ethereum and other Layer 1 blockchains. Hougan sees a significant opportunity in these blockchains that support stablecoins and tokenization.
As financial assets begin to move onto public blockchains, the underlying platforms like Ethereum are expected to become crucial to the future of digital finance. Investing in Ethereum and other leading blockchains such as Solana (SOL), Cardano (ADA), and more could provide exposure to this transformation.
“The best approach is likely to buy a basket of the leading assets: Ethereum, Solana, Cardano, XRP, Avalanche, Aptos, Sui, NEAR, and so on. Instead of trying to pick and choose, an indexed approach lets you buy a basket of assets and get exposure to the top ones, whichever they turn out to be,” he noted.
Next, Hougan pointed to Atkins’ mention of ‘super apps,’ which offer a broader range of financial services. He noted that Coinbase and Robinhood have adopted the super-app concept through their strategic expansions from different directions.
The former began with crypto and is expanding into traditional assets. Meanwhile, the latter started with conventional assets and is rapidly shifting towards crypto. Thus, these platforms are set for further growth with the SEC’s updated approach.
“I’ll go out on a limb here: One of these companies could become the largest financial services company in the world, maybe even becoming the first financial services company worth more than $1 trillion. Atkins just gave them a roadmap,” the executive mentioned.
Lastly, Hougan emphasized DeFi’s growth potential. While DeFi applications have faced regulatory challenges in the past, with the SEC’s friendlier stance, he believes DeFi platforms could see a massive surge in adoption and usage.
“Uniswap, the largest spot trading app, processed $88 billion in trading volume in June, its best month ever. DeFi lending protocols like Aave also hit a new high, with $56 billion in total value locked. Derivatives platforms like Hyperliquid are massive. With greater clarity, could these numbers rise by 10x? 50x? 100x? As traditional and crypto markets merge, the opportunity is huge,” he stated.
Thus, the Bitwise CIO’s remarks reflect a growing consensus that regulatory clarity and institutional adoption will drive a sustained crypto boom. Only time will tell whether this vision will actually be realized.
The post Bitwise’s CIO Highlights 3 Major Crypto Investment Areas After SEC’s ‘Project Crypto’ appeared first on BeInCrypto.
