As one of the top ten Bitcoin ETF issuers, Bitwise is the world's first cryptocurrency index fund, founded by former Facebook and Google employees.
Ethereum, the second-largest cryptocurrency, appears to be on the back of a lack of interest right now, but its underperformance could reverse as the year draws to a close, Bitwise said in a report on Tuesday.
Ethereum is little changed so far this year, while Bitcoin is up 38% and Solana is up 31%. Ethereum’s recent underperformance stems from risks associated with the November U.S. presidential election, increased competition from Solana and other blockchains, challenges facing token economics, and a mixed response to the launch of spot exchange-traded funds (ETFs) in the U.S., the report said.
“Ethereum has the most active developers, the most active users, and a market cap 5x larger than its closest competitor,” wrote Matt Hougan, chief investment officer at Bitwise. “It’s like the Microsoft (MSFT) of blockchain,” Hougan wrote. Everyone wants to talk about the newer companies and their game-changing technologies, like Google (GOOG), Slack (WORK), and Zoom (ZM), “but Microsoft is still bigger than all of them combined.”
As early as a few years ago, we have been emphasizing a point of view. The crypto market should be treated from an investment banking perspective. That is, looking back at the financial history of the past hundreds of years, those things that happened in history will repeat themselves.
In the infrastructure era, there are leading enterprises such as coal, steel, and real estate. In the era of technological revolution, there will be an era like Silicon Valley.
When times change, people tend to lack knowledge of new things. This is because it is difficult for humans to break through the current era and look into the future, and it is difficult for humans to imagine things they have not seen.
If it was 50 years ago, you would not think that Apple or Microsoft would have unlimited potential. Don't think you are smart, Tesla and Nvidia are only in the past decade.
Bitcoin and Ethereum have also been around for the past decade.
Technological revolution is often an iteration, which means that everything will be different from the traditional. This makes it impossible for people to effectively understand new things, but the potential of new things often means that they will replace or even surpass the traditional. That is, you think steel companies are big, but technology companies can be bigger and faster. In fact, looking back, this is still incredible.
For example, if you look back at Bitcoin and Ethereum, you can hardly imagine that assets can increase by tens of thousands or even tens of millions of times in the past ten years. There has never been such a rapid experience in human history, and it has not appeared in a digital form.
When you get involved in cryptocurrency or blockchain, you need to have a comprehensive and in-depth understanding of this field. People are talking about it, but they describe it in a one-sided way, which leads to more misunderstandings from the outside world.
Wrong understanding means missing out.
So, don't jump to conclusions before you fully understand something.
Whether it is the approval of ETFs or the implementation of more crypto applications, it means that the first 10 years of the crypto market have been a period of technological and market development amid criticism and misunderstanding. This is not the end, but a new beginning. Just imagine how unimaginable it will be in the next ten, twenty, or thirty years.
Regarding ETFs, Wall Street’s sales promotion has not yet reached its full potential. In the next one or two years, with the wealth effect brought by Bitcoin, the advancement of the crypto market in the traditional financial field will be immeasurable!
I believe that those who criticize the crypto market do so only because they don't understand it. Time will prove that technology is effective and the market is infinite. Don't miss the next decade, this is the biggest lesson of the past!
