Bitcoin Enters a New Stage In Its Evolution
In a recent memo sent to customers, Chief Investment Officer of Bitwise, Matt Hougan, announced that the era of Bitcoin’s sideways movement signifies its initial public offering (IPO) moment has arrived. Hougan bases his argument on a write-up from Wall Street veteran Jordi Visser. He asserts that this phenomenon presents an ‘extremely bullish’ stance, and the days of 1% bitcoin allocations are over.
Bitcoin’s trading performance has been relatively stagnant throughout 2025, achieving only a 9% increase since the beginning of the year. This is mild compared to the growth of 15% exhibited by S&P 500, 20% by Nasdaq Composite, and a whopping 51% by gold. The lukewarm performance comes despite reinforced ETF flows, notable regulatory development, and an increase in institutional demand, according to Hougan.
Bitcoin’s Transition to a Mainstream Asset
Visser likened Bitcoin’s current situation to that of a ‘silent IPO.’ He perceives Bitcoin as transitioning from a radical proposition to a mainstream asset much like the trajectory of tech giants Facebook and Google after their IPO. As founders and early employees encash their shares, Bitcoin too, has been stagnating for a few months as original adopters who made substantial profits start to liquidate their assets. Meanwhile, institutions are buying in a phased manner.
He believes that this consolidation period is positive, indicating a shift in the ownership from speculative pioneers to long-term institutional stakeholders. With the introduction of ETFs, corporate treasuries, and sovereign wealth funds, Bitcoin’s market can now handle large sales without notable disruption. It is a sign of its maturity as a global financial asset, as per Visser. However, this transition takes time, and once the balance is reached, it can recommence its upward trend.
Early Signs of Alarm Among Investors
Many crypto investors have responded to Visser’s write-up with a sense of dread. They are alarmed that institutions are buying Bitcoins while early adopters are selling theirs off, triggering doubt and suspicion. But Hougan counters this viewpoint. He stated that early investment sell-off does not suggest the end of an asset’s journey, rather it indicates the beginning of a new phase.
He uses Facebook as an analogy to underline that persistent trading after hitting a major milestone doesn’t thwart substantial long-term progression. Despite trading below its IPO price for a year, Facebook’s stocks have since multiplied more than fifteenth times. Bitcoin, now in its ‘post-IPO’ stage, may not yield 100-fold returns again, but possesses a significant upside potential post the exit of early holders, Hougan argues.
Hougan further elaborates that unlike tech behemoths, Bitcoin doesn’t require to increase revenues or launch new products; what it needs is a more comprehensive adoption. He believes that once the distribution stabilizes, it possesses the potential to attain gold’s market cap of $25 trillion rapidly, much sooner than expected.
Increasing Portfolio Allocation
As per Hougan, just like companies post their IPO are inherently less risky than start-ups, Bitcoin today is far more mature and stable than it was a decade ago. Its ownership is more diversified, and there’s been considerable growth in institutional adoption and ETF trading. All these factors point to its evolving status as a mainstream asset.
Hougan believes that as Bitcoin’s risk profile sees a decrease over time, its returns may moderate but will continue to be strong. He argues that this is not an indication to sell the asset; instead, it should be a reason to enhance exposure. The waning price volatility makes holding more Bitcoins safer, and therefore, the conventional 1% portfolio allocation is rapidly giving way to a baseline of 5%.
Hougan concluded by emphasizing that Bitcoin is going through its IPO moment. He strongly believes that this process is not something to dread but to celebrate by acquiring more Bitcoins.
Disclaimer: This article is for informational purposes only and should not be taken as investment, financial, or other types of advice.
