Bitwise CIO Names Ethereum, Solana, and Chainlink as Tokenization Leaders

Bitwise Chief Investment Officer Matt Hougan says that owning tokenized assets alone will not make investors rich from the tokenization boom. Instead, he recommends investing in the networks behind it, specifically Ethereum (no ticker mentioned), Solana, and Chainlink.

Hougan explained that while tokenized assets offer small advantages, such as trading around the clock and being easier to borrow against, they still rely on the underlying stock for most of their return. He believes that investors should own the infrastructure that makes tokenization happen.

Ethereum and Solana are high-performance layer 1 networks that serve as the base for tokenization, while Chainlink is a critical component that supplies real-world data to blockchains. Hougan estimates that Chainlink holds around 70% to 80% of the market for connecting blockchains to real-world data.

Chainlink's valuation is estimated at roughly $6 billion to $7 billion, which Hougan considers relatively small for something that could underpin global markets for decades. Spot Chainlink ETFs have not recorded a single week of net outflows despite weak market sentiment, indicating that investors understand the potential of this technology.