Crypto's rapid transformation has redefined the financial landscape, bringing institutional and retail players closer to a more regulated, dynamic environment. Roundtable anchor, Rob Nelson, explored these shifts with Matt Hougan, Chief Investment Officer at Bitwise, focusing on how the market has evolved, the role of new financial tools, and what lies ahead for crypto beyond bitcoin and ethereum.
Matt Hougan emphasized the dramatic growth since the early days of crypto, particularly following the fallout from FTX. “It’s day and night from two years ago,” he remarked. “Now, with bitcoin ETFs, ethereum ETFs, and options on these products, the market feels mature, almost like equity markets.” He pointed to the influx of traditional players as a sign of progress but acknowledged the journey is far from over.
When asked about the availability of traditional financial tools in the crypto space, Hougan noted a stark divide. “Bitcoin and ethereum are robust with futures, options, and spot ETFs,” he said. “Beyond those assets, we’re still in a different era of crypto.” This lack of regulatory development, he suggested, remains a hurdle for broader adoption.
Looking at the potential for growth outside major cryptocurrencies, Hougan identified regulation as a key factor. “For exponential growth, regulated markets need to take a step forward,” he stated. He expressed hope that new leadership in regulatory agencies might pave the way for significant advancements, though he acknowledged the ecosystem continues to improve steadily.
Rob Nelson probed further into which segment might lead the next wave of adoption—retail or institutional investors. Hougan responded with a telling metaphor: “Retail drives speedboats; institutions drive tankers.” He expects retail investors to act first, with institutions eventually dominating as infrastructure and regulations solidify.
Despite regulatory gaps, Hougan highlighted the resilience of the crypto space. “The ecosystem is better today than it was two years ago, and two years ago was better than eight years ago when Bitwise started,” he said, emphasizing steady progress in areas like custody and trading tools.
Ultimately, Hougan expressed optimism about the future of crypto markets. “If we revisit this conversation in two or three years, I think a lot of the market will look like what bitcoin and ethereum look like today—robust, well-established, and structured,” he concluded.