Bitwise CIO Advocates Higher Bitcoin Allocations for Stability

Matt Hougan, CIO at Bitwise, announced the shift away from allocating 1% to Bitcoin due to its maturity, emphasizing its reduced volatility and mainstream asset status.

This evolution positions Bitcoin to challenge gold’s market cap rapidly, supported by institutional adoption and significant ETF trading impact, reshaping investment strategies worldwide.

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The move highlights Bitcoin’s maturation and reduced risk, potentially advancing its market cap growth towards gold’s levels.

Matt Hougan, Bitwise CIO, emphasizes Bitcoin’s shift to mainstream investment status, advocating for a 5% allocation. Increased institutional participation has significantly reduced Bitcoin’s historical volatility.

Industry reactions to Hougan’s announcement have been active, with market analysts highlighting the increased investor confidence in Bitcoin’s value stability. The recommendation reflects a broader acceptance of Bitcoin as an established asset class.

Bitcoin’s Financial Maturity and Market Cap Outlook

Did you know? Comparisons of Bitcoin’s current stability to major post-IPO tech stocks reflect its evolving financial maturity, akin to companies like Facebook after their IPO phase.

As of November 6, 2025, Bitcoin (BTC) trades at $103,094.93 with a market cap of $2.06 trillion and a 60.09% market dominance, according to CoinMarketCap. Recent movements include a 3.95% 24-hour increase but a 17.26% downfall over 30 days.

Data from Coincu suggests that the increased Bitcoin allocation by institutions may expedite its journey towards gold’s market cap. Its decreased volatility further bolsters this investment narrative, aligning with technological and regulatory developments favoring cryptocurrency stability.