Matt Hougan, Chief Investment Officer at Bitwise, believes the crypto market is on the verge of a major rally as the US Securities and Exchange Commission (SEC) prepares to introduce generic listing standards for crypto exchange-traded products (ETPs).
Key Takeaways:
- Bitwise CIO Matt Hougan expects a strong year-end crypto rally driven by macro factors like rate cuts.
- He believes the SEC’s proposed generic ETP listing standards could fast-track multiple crypto ETFs.
- Bitwise has filed for a spot Avalanche ETF, aiming to offer institutional investors regulated exposure to AVAX.
In a note to clients this week, Hougan said these changes could “blow the market wide open” and fuel a wave of new listings, making this “the Super Bowl pre-game show” for crypto.
Bitwise CIO Sees Macro Setup for Strong Crypto Rally Despite September Slump
Hougan pointed out that while September has historically been a weak month for digital assets, several macro and structural factors are lining up for a strong year-end rally.
He cited potential interest rate cuts, growing inflows into crypto investment products, increasing concern over dollar strength, and rising momentum in stablecoins and tokenization as key drivers.
“Yet as investors, we’ve largely been stuck waiting,” he added.
At the center of his outlook is the SEC’s proposal for generic crypto ETP listing standards. Currently, each new spot crypto product must go through a lengthy and uncertain approval process.
Hougan said the proposed shift would allow issuers to launch ETPs more efficiently, within as little as 75 days, if the underlying asset meets pre-defined criteria, such as having a regulated futures market.
Assets like Solana, XRP, Avalanche, Dogecoin, Chainlink, and others could quickly qualify, potentially unleashing a flood of new ETP offerings.
This regulatory development comes as Bitwise has filed for a spot Avalanche ETF, joining VanEck and Grayscale in a race to offer institutional access to AVAX.
The fund will track the CME CF Avalanche-Dollar Reference Rate and be backed by AVAX tokens held in custody by Coinbase Custody.
Structured as a Delaware statutory trust, the fund aims to provide cost-effective exposure to Avalanche within a traditional investment wrapper.
Hougan Compares Crypto ETP Boom to Post-ETF Rule Surge in 2019
Hougan compared the expected ETP boom to the surge in traditional ETF issuance that followed the SEC’s adoption of the “ETF Rule” in 2019.
He noted that such reforms helped ETF launches triple in the U.S., transforming the market into a more accessible and competitive space.
If crypto follows the same path, he said, dozens of new single-asset and index-based ETPs could arrive rapidly, bringing with them more investors and institutional capital.
However, Hougan cautioned that product launches alone don’t guarantee inflows. Investors still need compelling fundamentals.
For instance, U.S. spot Ethereum ETFs saw modest demand at first and only gained traction after interest in related assets like stablecoins picked up.
Still, ETPs make crypto far easier to access, potentially setting the stage for strong rallies once the right conditions align.
“The SEC adopting generic listing standards is a ‘coming of age’ moment for crypto,” Hougan said. “But it’s also just the beginning.”
Meanwhile, SEC Chair Paul Atkins has said the agency would now issue preliminary notices of technical violations before pursuing formal enforcement actions against crypto firms.
The post Bitwise CIO Predicts Year-End Crypto Rally on SEC Tailwinds as Firm Files for Spot Avalanche ETF appeared first on Cryptonews.
