Bitwise CIO Says Trillions Could Flow Into Bitcoin, Sees $1.3 Million by 2035

Bitcoin could rise to $1.3 million over the long term, Bitwise said.

Matt Hougan, the asset manager’s chief investment officer, said in an interview that institutional investors could channel trillions of dollars into the Bitcoin market over the next decade and beyond, according to CoinDesk on Aug. 9.

Hougan said financial advisers, family offices and other institutional investors are likely to increase their Bitcoin allocations. Recent 13F filings tied to spot Bitcoin exchange-traded funds, along with moves by major financial firms including Morgan Stanley and Wells Fargo, show that shift is already underway, he said.

He added that demand could expand further to foundations, university endowments, pension funds, insurers, sovereign wealth funds and central banks. Those institutions manage between $100 trillion and $200 trillion globally, and even a 1% allocation to Bitcoin could support long-term price gains.

Bitwise expects Bitcoin to climb to $1.3 million by 2035, based on the view that it can capture a 25% share of the expanding global store-of-value market.

Hougan cited gold as the basis for that forecast. Gold’s market capitalization stood at about $2 trillion when gold ETFs launched in 2004 and has since grown to about $30 trillion. If the store-of-value market continues to expand at the same 13% annual rate and Bitcoin captures 25% of that market, the price could reach $1.3 million per token.

Hougan also said the influence of digital asset treasury companies, or DATs, will gradually diminish. The launch of spot Bitcoin ETFs has allowed investors to gain direct exposure to Bitcoin without using DATs, making fundraising more difficult for those companies than in the past.