Hi, it’s Marc. ✌️
“Zero is crazy because it means you’re just completely against the market... The starting point is about 2% of the size of the equity market and that should be the neutral starting point.”
That’s Matt Hougan, CIO of Bitwise Asset Management, on Bitcoin allocation. His point isn’t that one needs to be a crypto evangelist or a “laser-eyed” maximalist. It’s simply that in a world where Harvard is tripling its exposure and sovereign wealth funds are doubling down, having 0% exposure to digital assets is actually an active bet against the market.
In this episode, we sit down with Matt to make sense of the market’s recent swings.
Matt explains why the liquidity crunch and rate anxiety are temporary headwinds masking a massive structural shift: the transition from a programmed, halving-dependent cycle to a mature, macro-driven asset class.
We cover the “Bitcoin as a Service” valuation framework, why the old four-year cycle no longer explains the market, and why the smart money is quietly buying the haystack while retail tries to time the needle.
About Matt: Matt Hougan is the Chief Investment Officer at Bitwise Asset Management, the world’s largest crypto index fund manager. He was an early voice advocating for Bitcoin ETFs, and before joining Bitwise, he served as the CEO of ETF.com. A three-time member of the “Barron’s 100 Most Influential People in Fund Management,” Matt is the bridge between Wall Street rigor and the digital asset frontier, with presence on financial news channels like CNBC and Bloomberg.
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🎧 Jump to the best parts
(00:37) → The Four Major Headwinds: Why the market is stalling right now (liquidity, election anxiety, and the ghosts of October 10th) and why 2026 is the real target
(11:44) → Bitcoin is a SaaS Company: Matt’s brilliant framework for explaining Bitcoin’s value to traditional investors: It provides a service (wealth storage), but you buy the asset instead of paying a subscription.
(22:14) → Is MicroStrategy A Ticking Time-Bomb?: Matt breaks down the math behind the “synthetic halving” and why corporate treasuries need to do more than just HODL.
(26:30) → The “Do Hard Things” Thesis for DATs: Why ETFs have become the “risk-free rate” of crypto access, forcing companies like MicroStrategy and others to take on operational complexity to justify their premiums.
(41:33) → Buy the Haystack: In a world of exploding stablecoins and L2s, picking winners is hard. Matt explains why a diversified approach, owning the equity, the infrastructure, and the tokens, is the only sane strategy.
(46:36) → The Four 2026 Catalysts Bitwise Is Watching
Liquidity reversal (December 1st), Fed rate cuts, October 10th fears fading, and market structure progress. Matt’s specific roadmap for what needs to happen to hit new all-time highs—and why institutions are positioning now.
Important Links
Bitwise memo: https://experts.bitwiseinvestments.com/cio-memos
CFA Society NY: https://cfany.org/speaker-organizer/matt-hougan/
🎙️ In our conversation, we discussed:
Why the “Four Year Cycle” is fundamentally dead, even if it’s psychologically alive.
The rise of the “DeFi Mullet”: TradFi in the front, DeFi in the back.
Why stablecoins are the US dollar pair for the future of tokenised markets.
The valuation math behind a $1.3M Bitcoin price target by 2035.
Why Bitwise launched an XRP ETF and a staking-native Solana ETF.
Watch or listen now:
YouTube • Apple Podcasts
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My biggest takeaways from this conversation:
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