Crypto Investors Misprice Structural Shift Toward Blockchain-Based Infrastructure
Bitwise CIO Matt Hougan argues that investors are anchored on an outdated narrative about crypto, missing its structural shift toward blockchain-based infrastructure. According to Hougan, tokenization is accelerating at a rapid pace. SEC Chairman Paul Atkins' 'Project Crypto' aims to modernize securities regulation for on-chain markets.
BlackRock's Larry Fink predicts the industry will enter the early stages of tokenizing all assets. BlackRock has already launched its $2 billion BUIDL tokenized Treasury fund on Uniswap (UNI), while Apollo has tokenized its $700 billion Diversified Credit Fund across six blockchains and announced plans to acquire a stake in Morpho.
JPMorgan, Bank of America, Citigroup, and Wells Fargo are discussing a joint stablecoin. Fidelity is hiring a DeFi vaults manager. Hougan says that traditional investors have failed to register the changes, despite repeated claims of institutional adoption from crypto investors.
Hougan attributes this disconnect to anchoring bias, the tendency to fixate on the first piece of information encountered. He notes that tokenized real-world assets have grown sharply since 2020 and suggests a large delta between what people think is happening in crypto and what's actually happening.