Bitwise Chief Investment Officer: The era of traditional asset allocation with only 1% in BTC is over

According to The Block, Bitwise Chief Investment Officer Matt Hougan stated in a report to clients that Bitcoin is experiencing an "IPO moment," and the era of traditional asset allocation of only 1% to BTC is over.

Hougan cited the views of Wall Street veteran Jordi Visser, comparing Bitcoin's current phase to a "silent IPO," transitioning from a radical idea to a mainstream asset. Although Bitcoin only rose 9% in 2025, underperforming the S&P 500's 15% and gold's 51%, this consolidation reflects a healthy shift of ownership from risk-takers to long-term institutional holders.

Hougan believes that the sell-off by early investors is not the end of the asset's journey but the beginning of a new phase. As Bitcoin's risk characteristics decline and its volatility significantly decreases, the traditional 1% portfolio allocation is quickly giving way to a new benchmark of 5%. He stated that the path for Bitcoin to move from its current $2.5 trillion market cap to gold's $25 trillion market cap may unfold faster than expected.