Bitwise’s chief investment officer has outlined a potential shift in how institutional investors view Bitcoin, suggesting that financial advisers, family offices and large wealth firms could allocate trillions of dollars to the cryptocurrency over the next decade.
Matt Hougan, chief investment officer at Bitwise, told CoinDesk that Bitcoin is increasingly being regarded as a mainstream financial asset, with a 10-year timeline for broader institutional adoption. He cited growing interest from firms such as Morgan Stanley and Wells Fargo, which are working to make Bitcoin more accessible to clients.
Hougan’s analysis hinges on the scale of institutional assets, which are estimated to range between $100 trillion and $200 trillion globally. A 1% allocation of those assets to Bitcoin, he said, could support his long-term price target of $1.3 million by 2035.
This projection is based on Bitcoin capturing 25% of an expanding store-of-value market, a sector in which gold’s market capitalisation has grown from $2 trillion in 2004 to $30 trillion today. Hougan drew parallels between Bitcoin’s current trajectory and gold’s historical growth.
MicroStrategy, a corporate entity that has been a major holder of Bitcoin, recently sold some of its holdings, according to filings. Hougan noted that spot ETFs have reduced the ability of such firms to sustain a premium to net asset value.
The shift in institutional sentiment follows a decade in which retail investors drove Bitcoin’s value from $0 to $2 trillion. Hougan suggested that reaching $20 trillion in value would require institutional capital to take the lead.
Analysts stress that while the potential for growth is significant, the path to widespread adoption remains dependent on regulatory developments and market confidence.
Written by Oliver Grant
Markets Desk
