Bitwise CIO Matthew Hougan Discusses the Possibility of Meme Coin ETFs in the Future

Bitwise Chief Investment Officer Matthew Hougan on Monday said while meme coin ETFs are not entirely off the table, they are not a “free-for-all,”

Bitwise Chief Investment Officer Matthew Hougan spoke with Benzinga at The Digital Assets Forum in London on Friday.

Here's what else Hougan had to say:

On Meme Coin ETF Approvals: “I think you'll see ETFs for the largest, highest quality crypto assets. Top 10, top 20. I don't think most meme coins will qualify for an ETF. They're too small. By the time you get to asset like 25 is a tiny fraction of asset number one. So I think the economics of running an ETF on those will make it difficult to get there.”

Hougan also noted that his company won't be creating ETF’s for all crypto assets.

“We don’t want ETFs on assets that are illiquid, manipulated or significant insider ownership. Like those shouldn’t exist and they don’t.”

He explained the need for a globally distributed, highly liquid market with minimal insider influence.

“So what crypto assets have a broadly distributed, extremely liquid global market where it’s hard for insiders to manipulate them?”

He noted that he has not done the work on assets like Bonk or other meme coins, which would indicate a hesitance to create these ETF's.

On Bitcoin Price Peaking At $30,000 In 2024: “I think that's too low. I think we're going to see a top in 2024. I think Bitcoin is going to top $200,000 this year. I know a lot of people are saying, ‘Oh my gosh, it's already up so much. How can it do that?’ But if you look at the numbers, the new demand for Bitcoin this year is higher than the new supply, from both ETF's and corporate players. I see today as a buying opportunity.”

Hougan went on to say that he expects to see Bitcoin cross $200,000 in 2024.

“I think that's going to continue. We're going to see Bitcoin cross $200,000 in 2024. I think new all-time highs for ether and a top 10 that's going to have a really strong year.”

Hougan also predicted Bitcoin ETF inflows of over $50 billion in 2025.

“I think you'll see a doubling of the inflows into the Bitcoin ETF. So we did about $25 billion last year, I think we'll do over $50 billion in 2025. I think the institutional investors who are in the ETF will double down on their holdings and we'll also see new money coming in from the institutional players.”

Hougan noted that while the macro conditions create short-term volatility, the long term drivers for Bitcoin are specific to crypto.

“I think if you're looking at the short term, the macro conditions will create some volatility in the crypto markets. But if you're looking at the long term drivers for Bitcoin, they are specific to crypto.”