Matt Hougan, global research director of Bitwise Asset Management and president of ETF.com, said most cryptocurrencies would die.
During an interview, Hougan said he believes that out of 2000 cryptocurrencies 95 percent of them are unprofitable and will suffer a painful death. And concluded that,”The sooner it happens, the better.”
According to Hougan, there is much of what he defines as bad activity related to bubbles in the cryptocurrency industry that is currently being solved. He also said that he would expect important things to come out of what will remain. Just as Amazon, Google, Facebook, etc. emerged from the ashes of dotcom.
Hougan also pointed out that he is much more optimistic with the cryptoactives than with blockchain. To explain it, he compared the current state of blockchain with the lack of Internet.
According to him, it is same between private blockchains and public blockchains. Since anyone can access public channels and they need a cryptoactive. Also, according to him, open access technologies tend to win.
However, he still believes that private blockchains have their function and are important. Since they could allow for faster and cheaper liquidations and data management. For example, Hougan explained that private block chains could be a solution for mortgage management.
When his interviewer changed the subject to Initial Coin Offering (ICO), Hougan stated that many of the ICOs were scams. And commented that people are going to go to jail and I think it should. However, he stressed that it does not mean that there are no legitimate things.
Hougan also hoped that his company could launch an ETF (Exchange Traded Fund) that offers that exposure to crypts to everyone and that it’s safe, cheap and easy to get exposure to in the market.
In January, Bitwise had filed with the Securities and Exchange Commission (SEC) of the United States to launch a Bitcoin ETF (BTC) with physical possession.
As Cointelegraph recently reported, the Chicago Board Options Exchange (CBOE), along with investment firm VanEck and financial services company SolidX, have now re-applied with the SEC for a rule change to list a Bitcoin ETF.
In addition, in mid-January, Ed Tilly, CEO, president and director of the CBOE, stated that there is a need for Bitcoin’s publicly traded notes for Wall Street institutional investors to join cryptospace.