Bitcoin: The Alternative You Can No Longer Ignore

Episode #72: Bitcoin - The Alternative You Can No Longer Ignore

Guest: Matthew Hougan, Chief Investment Officer, Bitwise Asset Management

Bitcoin has evolved from a retail phenomenon to a macro asset that institutions can no longer afford to ignore. In this episode of Fund Shack, Ross Butler speaks with Matthew Hougan, CIO at Bitwise Asset Management, the firm behind the first crypto index fund and over $10B in assets.

A pioneer of ETFs and now a leader in crypto investing, Matthew explains why Bitcoin is becoming a core component of modern portfolios, how it compares to gold, and why it's poised to reshape global finance.

💼 From Retail to Institutional Adoption Bitcoin is no longer fringe. U.S. Bitcoin ETFs now manage $37B+, with institutional capital driving a third of inflows. Bitwise’s AUM has grown 10x in 18 months.

📈 Portfolio Construction: Bitcoin as an Alternative Asset Allocators are rethinking Bitcoin’s place, not tech, not equity, but an alternative. With low correlation, high returns, and now ETF access, 1–2% allocations are improving portfolio Sharpe ratios.

⚖️ Bitcoin vs. Gold... and Beyond Think of Bitcoin as programmable, portable, real-time gold. Its market cap is under $2T vs. gold’s $21T, highlighting significant upside for long-term believers in the “digital gold” thesis.

🌐 Bitcoin as Neutral Global Collateral In a fragmenting geopolitical world, Bitcoin may serve as a non-political, global settlement asset, used across borders, free from government control.

🧠 Finance on the Blockchain From instant loans to on-chain collateral, crypto markets offer faster, transparent alternatives to traditional finance. Hougan sees DeFi merging with TradFi, not replacing it, but upgrading it.

🗣 Advice for Financial Professionals Matthew’s call to action: experiment, learn, and get ahead. Just as ETFs reshaped investing, Bitcoin could reshape finance. Start small. Learn fast. Stay relevant.

--------------------------------------------

📩  Matthew Hougan, CIO of Bitwise Asset Management

Website: www.bitwiseinvestments.com

Twitter: @Matt_Hougan

Telegram: @pemetic

Linkedin: https://www.linkedin.com/in/matthew-hougan/

📢 Subscribe for More Fund Shack Episodes and tap into the minds shaping private markets.

🔗 LinkedIn : https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7159157815326949376

 📺 YouTube: https://www.youtube.com/@PrivateEquityPodcastFundShack?sub_confirmation=1

 📞 Contact:  Fund Shack is a private equity podcast and digital media channel for alternative investment professionals

 📧 katie@linearb.media

Chapters

00:00 – Intro to Matt Hougan, Fund Shack & Bitcoin relevance

01:00 – Why Bitcoin is the ultimate alternative asset

02:00 – Institutions entering Bitcoin: Demand and momentum

03:43 – Institutional case for Bitcoin: High returns, low correlations

06:03 – The blockchain as digital property infrastructure

07:00 – Bitcoin as finance’s inevitable disruption

09:00 – Bitcoin vs banks: Infrastructure comparison

11:04 – Bitcoin’s challenge to traditional valuation logic

12:03 – How institutions are categorising Bitcoin

13:17 – Why Bitcoin has value: Digital service logic

14:21 – Bitcoin’s fair value and addressable market

15:25 – Bitcoin as global settlement currency

17:03 – State actors adopting Bitcoin

18:09 – Bitcoin's correlation to other assets

19:30 – Why institutions find Bitcoin compelling

20:12 – Institutional access: How Bitwise ETFs work

22:17 – ETF security, cold storage & custody

24:00 – ETF mechanism under stress: Arbitrage & NAV

26:03 – Future of Bitcoin and financialisation

27:56 – Lending, collateral, and credit in a Bitcoin world

29:34 – Bitcoin’s influence on dollar policy

31:06 – How Bitcoin changes capital markets

33:15 – Programmable money: A new finance model

34:52 – Advice for traditional finance professionals

35:59 – Deflationary risk: Lending in a bitcoinised system

37:05 – Real value vs rent-seeking in future finance

38:25 – Advice for young finance professionals