• Bitwise CIO makes a case for diversified crypto funding in numerous belongings equivalent to Bitcoin, Ethereum, Solana, and Avalanche.
• He compares it to 2004, when Google was the main web firm, although Netflix made essentially the most cash for traders in a 21-year interval.
• He equates Blockchain to the web, saying the expertise can be utilized for various functions, just like the web.

Bitwise CIO Matt Hougan makes the case for diversified crypto funding, whilst he hails Bitcoin as an essential asset. 

Hougan stated that whereas “Bitcoin is the king of crypto assets”, citing that it’s the largest cryptocurrency, whereas having essentially the most liquidity and being well-known.

He says Bitcoin is the one digital asset that has a shot at being an essential international foreign money. He stated the asset is just like digital gold. 

Bitwise’s CIO stated that regardless of the essential standing of Bitcoin, it’s sensible to put money into different cryptocurrencies, making a comparability with the historic efficiency of web firms. 

Google and Netflix

Hougan asks the traders to place themselves in 2004. 

Google was the main web firm then, and traders would have been tempted to place cash into Google as it’s the “dominant player”, Hougan stated. 

He factors out that whereas Google has finished exceptionally nicely within the subsequent 21 years, gaining over 6300%, investing in different web firms would have served traders nicely, because the web is a “general purpose technology” with makes use of in retail, social media, and software program.

Investing in firms equivalent to Netflix, Amazon, and Salesforce, that are main gamers in different verticals of the web, would additionally go on to pay big beneficial properties for traders. 

Netflix is the best performing inventory on this interval with beneficial properties of over 50,000%. 

Amazon and Salesforce additionally rack up 10,000% and seven,000% beneficial properties, respectively, leaving Google because the worst-performing inventory amongst this group throughout this time. 

Blockchain is just like the Web

Hougan compares Blockchain expertise to the web, saying the previous can also be a general-purpose expertise with totally different crypto belongings used for various functions. 

“You can use a blockchain to create a better form of money (Bitcoin) or to create a programmable network for transferring real-world assets” (Ethereum, Solana, Avalanche).

You possibly can construct new forms of purposes (DeFi, DePin) or middleware that companies different blockchains (Chainlink). 

It’s also possible to construct conventional companies that help the crypto financial system (Coinbase, Circle, Marathon Digital)”, Hougan writes.

Energy of passive investing

It’s now a daily incidence that passive funds are trumping actively managed funds. 

Hougan factors this development out.

“Over the past 20 years, actively managed US equity funds have underperformed their benchmark indexes 97% of the time”, he stated. 

You will need to put money into the large image relatively than choosing winners, Hougan writes. 

He provides that after finding out historical past, it is smart to personal a basket of cryptocurrencies equivalent to Bitcoin, Ethereum, Solana, and Chainlink. 

Within the final 4 years, totally different crypto belongings emerged because the primary performer in numerous years.

Hougan demonstrates this with knowledge. He factors out that it’s inconceivable to foretell cryptocurrency winners in 2030. 

The case for crypto indexing in 10 sentences—and two charts.

Say it’s 2004. You realize the web goes to be massive. Search is its killer app, and Google is king.

For those who’d invested in Google, your cash would have grown 64x since then. Sensible transfer.

However the web turned out… pic.twitter.com/EvIrsnAVl9

— Bitwise (@BitwiseInvest) Could 13, 2025