Bitwise CEO Reveals Crypto Investors Adopt Wall Street Stock-Picking Strategy for Bitcoin and Altcoins

The cryptocurrency market has evolved significantly from its niche origins a decade ago, achieving mainstream adoption through ETFs and institutional acceptance. According to Hunter Horsley, CEO of Bitwise Investments managing $15+ billion in assets, crypto investors are now implementing traditional Wall Street stock-picking strategies rather than relying solely on market capitalization metrics. Historically, institutions viewed the entire crypto market through a bitcoin-centric lens, but are now recognizing the diversity of blockchain projects with unique use cases. This shift mirrors equity markets where investors analyze fundamentals rather than just market size. The strategy change comes as macroeconomic conditions differ dramatically from 2020's zero-interest rate environment. With current rates around 4% and persistent inflation, only crypto assets with strong fundamentals are likely to thrive - similar to how analysts select individual stocks based on financial health and industry position. Bitwise's recent SEC filing for an AVAX-focused spot ETF demonstrates this trend toward fundamental-based investment in alternative cryptocurrencies beyond bitcoin. Horsley noted institutions are increasingly comfortable with Ethereum, Solana, and smart contract platforms despite their complexity. Regarding bitcoin's role, Horsley believes it can function both as a store of value and payment network, but likely sequentially rather than simultaneously. He expressed optimism about Bitcoin Lightning Network and other scaling solutions improving transaction capabilities. The traditional four-year Bitcoin cycle tied to halving events may also evolve as institutional adoption changes market dynamics, according to Horsley's comments at the Token2049 conference.