A Bitwise executive recalled the recent statement by the Chair of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, that the American stock market will transition to blockchain and deals with tokenized securities within a few years. Considering the large gap between the volume of U.S. stocks at \$68 trillion and the volume of tokenized shares at \$670 million, cryptocurrencies are in an early stage of “adoption into traditional finance,” Hogan calculated.
“Stablecoins, tokenization, and Bitcoin will hold even greater significance. Besides these, a dozen other important economic sectors will link with the financial market: prediction markets, decentralized finance (DeFi), privacy technologies, digital identity, and much more,” listed the Bitwise investment director.
Nevertheless, Hogan could not guess which blockchains will dominate in the future, as blockchain usage will depend on regulation and the economic environment.
The Bitwise executive shared his investment approach—he prefers not to make large wagers on individual projects, but rather invests funds in cryptocurrency index funds. In Hogan’s view, such investments reduce the risk of selecting the wrong asset even in a rapidly expanding market.
According to the Bitwise executive’s forecast, major cryptocurrencies might resume growth by year-end. Hogan termed the October dip in the crypto market a good chance to acquire crypto assets at a lower price.
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