Bitwise Asset Management’s latest memo, “The Great Derisking of Bitcoin,” presents a strong case for investing in Bitcoin now, according to Chief Investment Officer Matt Hougan. He reflects on Bitcoin’s journey since 2011, noting significant hurdles like security, regulatory concerns, and technology challenges that the cryptocurrency has successfully overcome. Hougan highlights a recent key development: the U.S. government’s establishment of a Strategic Bitcoin Reserve, which he believes mitigates the risk of a potential government ban. This change, along with increasing institutional interest, has transformed Bitcoin from a speculative investment into a credible asset, leading to higher allocation intentions among investors. Hougan forecasts that Bitcoin’s appeal will continue to grow, with potential allocations rising significantly in the future.
In its latest investor memo titled “The Great Derisking of Bitcoin,” Bitwise Asset Management articulates an optimistic view on Bitcoin’s future. Chief Investment Officer Matt Hougan claims that now is the best time in history to invest in Bitcoin, citing a favorable risk-adjusted scenario. The memo, released on March 25, 2025, reflects on Bitcoin’s early days and notes significant milestones that have transformed its risk profile.
In Hougan’s opening remarks, he shares a personal anecdote from February 2011 when he first heard about Bitcoin during a Market meeting. At that time, Bitcoin had just crossed the $1 mark. He recalls that a $1,000 investment back then would be worth about $88 million today. However, he emphasizes that investing in Bitcoin back then was fraught with risks due to lack of regulatory clarity and secure custodial solutions.
Over the years, Bitcoin has gradually overcome multiple existential threats. With better trading platforms and custodial services like Coinbase, barriers to entry have decreased significantly. More institutions, including Fidelity, are now involved in cryptocurrency, instilling trust and reducing fears about security.
A major milestone occurred in 2024 with the introduction of spot Bitcoin exchange-traded funds (ETFs) in the US. This development helped traditional financial markets recognize Bitcoin’s legitimacy, making it easier for institutions to add it to their portfolios.
One significant concern for Bitcoin investors has been the fear of potential government restrictions. Hougan draws a parallel with the US government’s gold confiscation in 1933, which had investors worried about Bitcoin’s future. However, he believes that the recent creation of a US Strategic Bitcoin Reserve by President Trump has removed that existential threat. This move signals a shift toward aligning Bitcoin with national interests instead of outright bans.
As perception shifts, Bitwise reports a growing trend in institutional investment. Whereas holding 1% in Bitcoin used to be seen as aggressive two years ago, many clients are now considering allocations of around 3% or more. Hougan anticipates this trend will continue, pushing allocations to 5% and beyond as Bitcoin is increasingly viewed as a credible asset rather than a speculative gamble.
At present, Bitcoin is trading at $87,865, indicating a significant rise in interest among investors. As the landscape evolves, it appears that Bitcoin’s past risks may ultimately pave the way for a brighter future.
Tags: Bitcoin news, Bitwise Asset Management, cryptocurrency investment, Bitcoin ETFs, Bitcoin price analysis, government regulation of Bitcoin.
What does TradingView say about buying Bitcoin now?
TradingView suggests that now is a great time to buy Bitcoin. They believe the Market is showing positive signs that could lead to price increases soon.
Why should I consider buying Bitcoin?
Investors see Bitcoin as a digital asset with potential for profit. As demand grows, prices may rise, making it a good time to invest if you’re looking for long-term gains.
What are the risks of buying Bitcoin?
Buying Bitcoin carries risks like price volatility. The value can change quickly, so it’s important to invest only what you can afford to lose.
How can I start buying Bitcoin?
You can buy Bitcoin through various platforms like exchanges or apps. First, create an account, verify your identity, and then you can deposit money and purchase Bitcoin.
Is it too late to invest in Bitcoin?
Many experts believe there’s still time to invest in Bitcoin. While it has already gained popularity, some analysts think there are still opportunities for growth ahead.