In a note to investors on Tuesday, Bitwise Chief Investment Officer (CIO) Matt Hougan stated that several Layer-1 tokens and crypto-focused stocks present a strong investment opportunity following the Securities & Exchange Commission's (SEC) Project Crypto initiative.In a note to investors on Tuesday, Bitwise Chief Investment Officer (CIO) Matt Hougan stated that several Layer-1 tokens and crypto-focused stocks present a strong investment opportunity following the Securities & Exchange Commission's (SEC) Project Crypto initiative.

Crypto tokens and stocks to watch out for following SEC's Project Crypto: Bitwise

3 min read
  • The SEC's Project Crypto initiative provides a window of opportunity for investors, says Bitwise's Matt Hougan.
  • Hougan states that Layer-1 tokens, such as Ethereum, that support stablecoins and tokenization are a good investment opportunity.
  • Hougan suggests that Coinbase or Robinhood could become the first financial services company to hit a $1 trillion valuation.

In a note to investors on Tuesday, Bitwise Chief Investment Officer (CIO) Matt Hougan stated that several Layer-1 tokens and crypto-focused stocks present a strong investment opportunity following the Securities & Exchange Commission's (SEC) Project Crypto initiative.

Layer-1 tokens, crypto exchanges to benefit from SEC's Project Crypto initiative

The Project Crypto initiative introduced by SEC Chair Paul Atkins last week provides a "roadmap for how to invest over the next five years," Bitwise CIO Matt Hougan said in a note to investors on Tuesday.

"The first and most obvious opportunity is to invest in Ethereum and other Layer 1 blockchains that support stablecoins and tokenization," he added.

Hougan noted that investors have yet to price in Atkins' vision as the prices of top Layer 1 tokens, such as Ethereum (ETH) and Solana (SOL), have not yet reacted.

While Ethereum leads the track in stablecoin integration and tokenization, he warns against relying entirely on current front-runners, noting that early winners in past tech shifts didn't always stay on top. He suggested that market participants could adopt an indexed approach, which allows them to purchase several Layer-1 tokens without needing to choose which is the favourite for growth.

Most of these Layer-1 tokens are trading in the green on Wednesday as the crypto market eyes a recovery from its recent decline.

According to Hougan, Project Crypto also presents a good opportunity for Robinhood and Coinbase, as they are already developing products similar to the "Super Apps" concept Atkins highlighted last week. The SEC Chair stated that allowing market participants to "innovate with 'Super Apps' is a major aim of his SEC Chairmanship. He also expressed interest in seeing broker-dealers with alternative trading systems offer a wide range of services, including crypto staking and lending.

"It's hard not to think of Coinbase and Robinhood, two firms that have embraced the super-app concept," wrote Hougan, adding that one of these firms could be the first financial institution to hit a $1 trillion market valuation due to the roadmap that Project Crypto offers.

Other crypto industry leaders have shown support for the new initiative, with several experts citing it as a strong push toward clearer crypto regulation.


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