Bitwise CIO Predicts Next Crypto Bull Run Driven by Onchain Finance and Institutional Adoption

Morning Minute — by Tyler Warner. The views here are his own. Bitwise CIO: Wall Street Going Onchain Will Power the Next Bull Market Bitwise CIO Matt Hougan argues the next crypto bull run won’t be a repeat of past rallies driven by pure speculation. In a new memo, Hougan lays out a different thesis: the coming cycle will be powered by the convergence of traditional finance and onchain finance — think stablecoins, tokenization, 24/7 trading, instant settlement and institutional DeFi — rather than token mania. His central point: if this cycle is driven by real financial activity and recurring revenue, it could ultimately be larger than previous cycles even if it grows more slowly and with lower volatility. Hougan frames the opportunity as two complementary “lanes”: - The Hyperliquid Lane fixes a structural problem in crypto where protocols can generate fees and volume without creating genuine demand for their native tokens. He points to liquidity-first protocols like Uniswap, Aave and Morpho — plus onchain names such as Pump.fun — as examples moving in this direction. - The Robinhood Lane is the institutional stampede into crypto rails: big players and infrastructure integrating with tokenized markets. Hougan cites moves like Citadel’s activity on Crypto.com, Morgan Stanley’s presence on E*TRADE and the DTCC advancing tokenization as signs that traditional finance is already embedding onchain plumbing. This isn’t a brand-new idea on Crypto Twitter, but it gains weight when the CIO of a major index and asset manager formalizes it. The takeaway: it’s no longer “the institutions are coming.” According to Hougan, “the institutions are here — and they’re going to drive the next bull cycle.” Time will tell whether revenue-driven, onchain financial activity replaces speculation as the primary engine of the next market upswing. Today’s other newsletter highlights: corporate treasuries & ETFs, plus a meme-coin tracker.