Bitwise CIO: The era of traditional portfolios allocating only 1% to BTC is over

According to ChainCatcher, citing The Block, Bitwise Chief Investment Officer Matt Hougan stated in a report to clients that bitcoin is experiencing an "IPO moment," and the era when only 1% of traditional assets were allocated to BTC has ended.

Hougan quoted Wall Street veteran Jordi Visser, comparing bitcoin's current stage to a "silent IPO," shifting from a radical concept to a mainstream asset. Although bitcoin only rose 9% in 2025, underperforming the S&P 500 Index's 15% and gold's 51%, this sideways movement reflects a healthy transfer of ownership from risk-takers to long-term institutional holders.

Hougan believes that the sell-off by early investors does not mark the end of the asset's journey, but rather the beginning of a new phase. As bitcoin's risk characteristics decline and its volatility drops significantly, the traditional 1% portfolio allocation is rapidly giving way to a new 5% benchmark. He stated that the path for bitcoin to move from its current $2.5 trillion market cap toward gold's $25 trillion market cap may unfold faster than expected.