Bitwise CEO Says Digital Asset Investors Are Borrowing from Wall Street’s Proven Methods

Bitwise CEO: Crypto Investors Now Turning to Wall Street-Style Strategies

Institutional players in the digital asset space are adopting Wall Street’s traditional investment approach — focusing on fundamentals and selectivity rather than market size — signaling a new phase of maturity for the crypto market, according to Hunter Horsley, CEO of Bitwise Asset Management.

Over the last decade, crypto has transformed from a speculative niche into a diversified asset class, embraced by hedge funds, corporate treasuries, and even sovereign entities. Yet, despite this evolution, many investors still rely heavily on market capitalization as the primary measure of value. Horsley said that is changing.

“Institutions used to view the entire crypto landscape as an extension of Bitcoin — digital gold,” Horsley told CoinDesk during Token2049 in Singapore. “Now, they’re recognizing crypto’s diversity. Each project has distinct fundamentals, use cases, and risk profiles. The approach is becoming more like traditional stock picking.”

Moving Beyond Market Cap

Bitwise, which manages more than $15 billion in digital assets, has seen this institutional shift firsthand. Rather than allocating capital based solely on asset size, investors are increasingly studying fundamentals — network adoption, revenue models, developer activity, and governance — much like analysts evaluate corporate performance in equity markets.

This “stock-picking” mentality reflects crypto’s broader integration into financial systems. Bitwise itself recently filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot ETF for Avalanche’s AVAX token, highlighting growing demand for exposure beyond Bitcoin.

Institutional Confidence and a New Macro Climate

The strategic evolution comes amid changing macroeconomic conditions. During the 2020 bull cycle, near-zero interest rates and low inflation fueled an “everything rally,” lifting even the most speculative coins. Today, with U.S. interest rates around 4% and inflation remaining sticky, investors are more discerning.

“We’ve moved from an environment where everything goes up to one that rewards quality,” Horsley said. “Institutions are seeking assets with sustainable growth and strong fundamentals.”

This aligns with broader market perspectives from economists like Mohamed El-Erian and Russell Napier, who argue that in the current era of fiscal dominance and high inflation, selective investing and dynamic allocation are essential.

Bitcoin’s Role and the Cycle Debate

As for Bitcoin, Horsley believes it can function both as a store of value and a payment network, but not simultaneously.
“Bitcoin must first achieve universal acceptance as a store of value before it can truly serve as a medium of exchange,” he explained. “That’s why efforts like the Lightning Network and Lightspark are so important — they’re paving the path for eventual payment utility.”

Regarding Bitcoin’s historical four-year halving cycle, Horsley said the familiar pattern could still play out but may be less pronounced.
“The chance of another major counterparty failure like FTX or Terra is far lower now,” he noted. “Even if we see a bear market, the downside should be milder given how much the ecosystem has matured.”

A More Sophisticated Crypto Market

Horsley summarized the shift as the natural next step for a maturing industry:
“As institutions enter the space, they’re applying the same analytical frameworks used in traditional finance. Crypto investing is becoming more nuanced, data-driven, and professional — much closer to how Wall Street operates.”

The result, he said, is a digital asset market increasingly defined by fundamentals, institutional discipline, and long-term conviction rather than hype or speculation.