Bitwise Investments CIO on the Three Cryptoassets Currently Catching His Eye
In a recent interview on the “Making Money with Matt McCall” podcast, Matt Hougan, the Chief Investment Officer of Bitwise Investments, offered his insights on the cryptocurrency market and the assets that investors should consider.
Hougan emphasized the importance of having both Bitcoin (BTC) and Ethereum (ETH) in a portfolio, pointing out that Bitcoin is “still a very critical crypto asset, the asset institutions feel most comfortable holding.” He went on to explain that there is a growing demand for Bitcoin, driven by institutional adoption and the decreasing volatility of the asset.
When it comes to Ethereum, Hougan praised the significant technological progress the ecosystem has seen, noting the large number of developers and rapidly decreasing transaction costs. He said, “I love what’s going on in Ethereum.”
In addition to Bitcoin and Ethereum, Hougan recommended considering the native token of Cosmos (ATOM), calling it an “interesting altcoin if you wanted to go beyond the big two.” He highlighted the excitement and activity surrounding the asset, saying that it can potentially drive the cryptocurrency market forward in the future.
A recent survey by CoinShares, which claims to be “Europe’s largest digital asset investment and trading group,” sought to gain insight into the thoughts and actions of professional investors in the digital asset space.
According to the results of CoinShares’ latest Digital Asset Quarterly Fund Manager Survey, 60% of the 43 fund managers surveyed, who have a combined $390 billion in assets under management, believe that Ethereum has the most promising growth prospects in 2023.
The survey also found that investment in Bitcoin and Ethereum has been consolidated and that digital assets are increasingly being included in hedge fund portfolios, rising from 0.7% to 1.1%. The tendency to include digital assets in investment portfolios has been driven by client demand and speculation. Interestingly, some investors view recent market events as opportunities.
When asked about reasons for not investing in digital assets, the survey revealed a decline in the perceived risk of reputational damage, while regulation remains a concern. The likelihood of government bans has decreased, but risks related to custody and volatility have risen.
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