Home Crypto Altcoin News Altcoin recoveries in question while Bitcoin ETFs on the rise

Altcoin recoveries in question while Bitcoin ETFs on the rise

In a barren land of pain and losses in the crypto space, people may wonder if most assets will ever recover. Bitwise Asset Management’s head thinks they will not, but is hopeful for a few, as well as a bitcoin exchange-traded fund (ETF).

Matt Hougan sees a correlation to the 90s

Bitwise Asset Management’s worldwide head of research Matt Hougan recently said, “95 percent of these [all crypto assets] will die a painful and deserved death,” as quoted in Bloomberg’s recent article.

CoinMarketCap lists 2080 different cryptocurrencies. In Bloomberg’s article, Hougan related the situation to that of the dot-com bubble in the late 1990s to early 2000s.

An article from Business Insider noted, “[c]ompanies worth billions when they IPO’d went to zero. Good companies were dragged down with them: Cisco lost 86% of its market cap. Amazon stock fell from $107 to just $7.” The current cryptocurrency situation may be similar.

Out of the ashes

Companies such as Amazon and eBay survived the bubble, however, eventually turning into global giants. A similar outcome may occur in the case of cryptocurrencies, according to Hougan’s comments.

Hougan sees many comparisons to the dot-com bubble. “I think it [crypto] is the next dot-com,” Hougan said in a Bloomberg Radio podcast episode included in Bloomberg’s recent article. “The dot-com bubble created Pets.com, but it also created Amazon,” he added.

According to Hougan, the majority of crypto assets may fail, but the handful that survives likely will see significant success.

I think there are 2,000 cryptocurrencies out there, 95% of them are useless and will die a painful death. The sooner that happens, the better. There’s also alot of bad activity, bubble related activity that’s getting cleared up […] But from those ashes, I think will emerge important things, just like from the dot-com ashes emerged Amazon, Google, Facebook, etc.”

Bitwise crypto ETF

Bitwise Asset Management currently is developing an ETF based on its index of 10 different crypto assets, and filed the project with the Securities and Exchange Commission (SEC), according to Bloomberg’s article and podcast.

Hougan detailed, “we have filed two applications for cryptocurrency ETFs. One is an index basket that holds the top ten crypto assets, and one is bitcoin only.” Regarding the purchase of bitcoin through an ETF, “if the SEC approves this ETF, you will be able to buy it [bitcoin] through an ETF, the same way you buy gold through GLD or silver through SLV,” Hougan added.

On the matter of a bitcoin ETF, the SEC has held a tough line, rejecting many bitcoin ETF proposals over the past several months. Perhaps most notably has been the many VanEck-SolidX bitcoin ETF delays.

According to Bloomberg’s podcast interview, Hougan is hopeful for the SEC’s approval. He stated Bitwise currently is pursuing the bitcoin ETF more actively than its other mentioned index ETF right now. “We’re hopeful and optimistic that we can work with the SEC. They’ve raised legitimate issues, but we hope we can work through it and we’ll see,” Hougan said.

The above is to be considered opinion and not investment advice in any way, as an unbiased media, no one interferes with the Editorial content of CryptoInsider.com, writers have freedom to choose their own direction, members of Crypto Insider do not participate in trades based on content.

Like what we wrote? Donate to us today so we may continue to write! 
ETH: 0xDf4d2529D777a80717E85Ed2269830ad6265951B
LTC: LMT3LCbCSvActkVo4dgzbHjn1HPrCgKch2
BCH: 17sFsLgZq9jibtqi5Bo5SiUcCD4TG8RQwE

Benjamin Pirus
Benjamin Pirus
BJ is a full time writer, editor, and trader in the cryptocurrency space. He has written many professional articles for numerous ICOs, news sites, and other interested parties in the crypto space. He is also a trader, staying up to date with the crypto markets constantly, and dabbling in traditional financial market trading occasionally.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Interview: Yoni Assia on eToroX and the cryptocurrency market

On April 16th 2019, eToro founder and CEO Yoni Assia has agreed to do an exclusive interview for Crypto Insider at the Paris Blockchain...