Hunter Horsley, CEO of Bitwise Asset Management, has suggested that the traditional model of investing in cryptocurrencies based primarily on market capitalization may soon give way to a more nuanced and analytical approach, similar to how investors evaluate stocks on Wall Street.
According to Horsley, the maturing nature of the cryptocurrency market signals the beginning of a new phase in which investors look beyond raw market cap numbers to assess potential investments. This could involve evaluating project fundamentals, team leadership, use cases, and financial metrics—paralleling the strategies used in traditional equity markets.
Bitwise’s Chief Investment Officer also supports this evolving view, noting that the shift reflects a broader trend toward institutional and informed retail participation in digital assets. With increased adoption and regulatory clarity, the market is adapting to a framework where valuation and due diligence play a more significant role in decision-making.
The company’s leadership indicated that as crypto matures as an asset class, products and portfolios will likely mirror more sophisticated investment strategies. This would diverge from the previous approach where investors often allocated funds primarily based on a coin’s weightage in market cap indices, such as Bitcoin or Ethereum.
Horsley’s comments come at a time when asset managers and financial advisors are showing growing interest in crypto-related products, with many seeking tools and strategies that mirror those used in traditional finance.
Bitwise, one of the leading providers of crypto index funds, has long advocated for better tools and structures to aid serious investment in the sector. The firm views this transition as a necessary step toward broader institutional acceptance and sustainable growth for the industry as a whole.
Source: https:// – Courtesy of the original publisher.
