On Tuesday (June 29), Matt Hougan, CIO at Bitwise Asset Management, the world’s largest crypto index fund manager, talked about the present and the future of the crypto markets.

His comments about crypto were made during an interview on “Bloomberg Technology“, a daily news program on Bloomberg Television hosted by Emily Chang.

Below are a few highlights from Hougan’s answers to Chang’s questions.

On Regulatory Activity in UK, Canada, and Elsewhere

I think crypto investors realize that the path to a bigger crypto future lies through institutional adoption and the pathway to institutional adoption lies through regulatory clarity… People think that regulation is bad for crypto. It’s actually the single biggest driver of the bull market. More regulatory clarity means good things for crypto.

China’s Crackdown on Crypto Mining

What’s happening in crypto right now is you have some short-term negative news that leads to long-term positive results. China is a great example. China banning crypto mining… leads to short-term volatility because crypto miners in China may sell some of their holdings to deal with the economic uncertainty.

There may be a short-term dip and hashrate, but long term, the health of Bitcoin improves as the mining activity spreads around the world, as more of it comes to places like the United States, as we get less geographic concentrated in China…

I think what [Saylor] is pointing to is sort of the real story in crypto right now, which is news is driving short-term volatility, but almost all of that news — China banning mining, crackdowns on leverage, increased regulatory activity — all of that is driving long-term, good things for the crypto market. All of it is contributing to what I think will be the next leg of the crypto bull market — short-term negative, long-term positive.

Cathie Woods’ ARK Invest Filing a Bitcoin ETF Proposal With the SEC

Cathie is a pioneer in many ways and for good reasons. I think it’s a sign that U.S. fund companies — bitwise among them, but obviously Cathie and VanEck and others — are confident that we will eventually get a Bitcoin ETF. We are closer than we’ve ever been before.

There’s still a few regulatory hurdles, but I think it is still a matter of when and not. And Cathie is yet another indication that we’re getting closer. Will it be this year? will be early next year? I don’t know, but will we eventually have a Bitcoin ETF? I think absolutely because we’re seeing institutional capital moving into this space. We’re seeing greater regulatory clarity and those are exactly the developments we need.


The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.


Photo by “KNFind” via Pixabay