Bitwise Predicts Bitcoin as the Leading Asset of the Next Decade
In a recent edition of the Weekly CIO Memo, Matt Hougan, Chief Investment Officer at Bitwise, has presented his optimistic outlook on Bitcoin, predicting it to emerge as the top-performing investment over the next ten years. His forecast estimates an impressive compound annual growth rate (CAGR) of 28.3% from 2025 to 2035. This growth rate suggests that a US$1 investment in Bitcoin today could potentially escalate to around US$12.60 (approximately AU$19.70) within ten years, significantly surpassing the long-term return expectations of traditional assets such as stocks, bonds, and real estate.
Hougan’s analysis includes a comparative assessment of Bitcoin against various assets, including shares, bonds, gold, and property. He emphasises that Bitcoin’s unique market behaviour allows it to act as a diversifying asset for institutional investors, who are increasingly recognising its value as a staple in their portfolios rather than just a fleeting opportunity.
Growing Institutional Demand and the Impact of ETFs
The increasing interest in long-term Bitcoin projections from professional investors marks a notable shift in the market landscape. Historically, between 2017 and 2024, Bitwise did not receive any requests for long-term assumptions regarding Bitcoin. However, in 2025 alone, there have been twelve inquiries from significant asset management platforms, each overseeing hundreds of billions of dollars in assets.
This surge in interest is largely attributed to the introduction of spot Bitcoin Exchange-Traded Funds (ETFs) in January 2024 and the subsequent approval on national account platforms earlier this year. Hougan points out that this change signifies Bitcoin’s transition into a core investment category, highlighting a shift in perception from being a speculative asset to a fundamental component of investment strategies.
Volatility and Institutional Adoption
Hougan acknowledges that while institutional adoption is on the rise, Bitcoin’s volatility is expected to continue, albeit with a gradual decline over the next decade. Current trends indicate that approximately 7% of Bitcoin’s total supply is now linked to ETFs, with corporate treasuries holding more than US$80 billion (approximately AU$124.6 billion) in Bitcoin.
Despite the anticipated easing of volatility, Hougan cautions that Bitcoin will still carry inherent risks and potential rewards as institutional players continue to enter the market. His insights suggest that while the asset class matures, it remains a high-risk investment that could deliver substantial returns in the long run.
Conclusion
The insights shared by Matt Hougan signal an evolving perception of Bitcoin within the financial community. As institutional interest grows and Bitcoin establishes itself as a legitimate cornerstone of investment strategy, it becomes evident that its potential for growth in the coming decade is more significant than ever. Investors and institutions alike may find Bitcoin to be an attractive addition to their portfolios, poised for remarkable performance against traditional investment benchmarks.
