Matt Hougan, Chief Investment Officer at Bitwise Asset Management on Monday described the surge in public companies holding Bitcoin (CRYPTO: BTC) as a “megatrend” that is set to accelerate, driven by concerns over dollar devaluation and growing investor confidence.
What Happened: Speaking on CNBC, Hougan highlighted that 79 public companies now hold $57 billion in Bitcoin, a 160% increase from last year.
Hougan attributed this trend to corporations seeking alternatives to cash and U.S. Treasuries amid record money printing and rising deficits.
“Corporations globally are sitting on records amount of cash… But with the huge money printing and growing deficits, that no longer seems like a valid approach,” he said.
Bitcoin, he noted, is seen as “the best horse in that race” for protecting wealth.
The Bitwise CIO predicted that thousands of companies will eventually adopt Bitcoin, stating, “We think we’re in inning one or two of this megatrend period, but you’re seeing it accelerate over time.”
He also pointed to a structural imbalance in Bitcoin's supply and demand, with ETFs, corporations, and governments absorbing more Bitcoin than the 165,000 produced annually, potentially pushing prices to $200,000 by year-end.
In the interview, Hougan discussed Bitwise's new GameStop (NYSE:GME)-focused covered call ETF, launched to capitalize on the stock's volatility.
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He explained that covered call strategies “translate that volatility into income,” offering investors a way to maintain exposure while generating returns.
This approach aligns with Bitwise's broader strategy, including its spot Bitcoin and Ethereum (CRYPTO: ETH) ETFs and pending applications for Solana (CRYPTO: SOL), Dogecoin (CRYPTO: DOGE), and XRP (CRYPTO: XRP) ETFs.
What’s Next: On the regulatory front, Hougan expressed optimism about the Senate's advancement of the Genius Act stablecoin bill, calling it potentially more significant than the 2024 spot Bitcoin ETF approvals.
“If we do get there, I think we’re looking at the longest and most sustained bull market that crypto has seen,” he said, citing bipartisan support and the U.S. government's need for stablecoins to fund treasuries.
Despite opposition from Senator Josh Hawley, who fears the bill favors big tech, Hougan remains confident it will pass, setting the stage for a multi-year crypto bull market.
He also highlighted Bitcoin's role in portfolios, noting that its low correlation with stocks and bonds can enhance risk-adjusted returns without increasing volatility.
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