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May 6, 2025

Bitcoin Transitioning From Risk To Hedge Asset As Institutions and Governments Adopt BTC, Says Bitwise CIO

By Henry Kanapi

The CIO of the crypto asset management firm Bitwise says Bitcoin (BTC) is going through the next phase of its natural evolution.

In a new Crypto Prime interview, Matt Hougan points out a key difference between the current Bitcoin bull market and the one witnessed in 2020.

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According to Hougan, the current market cycle is being driven by major institutions laying the groundwork for Bitcoin’s evolution into a trusted store of value.

“The Bitcoin of today really is different than the Bitcoin of five years ago. That was a Bitcoin driven by retail investors and crypto-native investors. This is increasingly a Bitcoin driven by institutions, corporations, governments and macro hedge funds. 

And you’re seeing it behave differently. You’re seeing it behave more like a hedge asset. I think it’s maturing before our eyes. Bitcoin’s a teenager. It’s 15 years old. It’s in a transition phase from a risk asset to a hedge asset. But I think that’s the direction of travel. I think you’re going to see it act like that more and more in the future.

And as it does, it’s going to bring more investors into it because it’s a really useful tool in the macro quiver.”

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At time of writing, Bitcoin is trading for $94,703.

 

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