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Bitwise investment chief Matt Hougan has hailed a recent speech from Securities and Exchange Commission Chair Paul Atkins as “the most bullish document” on cryptocurrencies, outlining sectors that are likely to benefit from the initiative.
In a speech to the American Policy Institute last week, Atkins introduced “Project Crypto” as an initiative to update U.S. rules to allow the financial market to move on-chain. Beyond defining the initiative, he outlined concrete steps the agency intended to take to achieve the goal in the coming months.
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“It’s the most complete vision of how crypto can reshape financial markets that I’ve read,” Hougan said in a Tuesday note. “I can’t imagine reading the speech and not wanting to allocate a significant portion of your capital to crypto.”
But which cryptocurrency assets in particular should you bet on?
The most obvious plays are leading Layer 1 blockchains, such as Ethereum, Solana, XRP and Cardano, which are likely to host the financial market tokenization envisioned by Atkins. But instead of picking winners, Hougan recommends an index approach.
“Having watched the emergence of digital trading in the early 2000s—the last major upgrade of our financial system—I remember that the early market leaders were firms like Island ECN and Instinet,” he wrote. Heard of those lately? Me neither. But Nasdaq’s stock is up 2,275% since it started trading in July 2002.”
Several cryptocurrency index fund issuers, including Bitwise, have filed to convert their funds into exchange-traded funds that are more easily accessible to retail investors. A number of these applications, including Bitwise’s offering, have received approvals that have been stayed pending an SEC review.
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The next opportunity lies in “Super-Apps,” Hougan said.
Atkins last week defined super-apps as platforms that offer a broad range of financial products and services “under one roof with a single license.”
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