Bitwise Warning: Wall Street Fully Shifts to On-Chain Finance, Traditional Investors Still Severely Underestimate Cryptocurrency Opportunities

February 26 News, Bitwise Chief Investment Officer Matt Hougan stated that although Wall Street is accelerating the push for the financial system to migrate to blockchain, many traditional investors still overlook the profound impact cryptocurrencies will have on the future structure of capital markets. In his latest report, Hougan pointed out that institutional-level deployment of on-chain finance, tokenized assets, and stablecoins has clearly accelerated, yet market awareness remains in the early stages.

Matt Hougan believes that many investors are influenced by the “anchoring effect,” still viewing the crypto industry as a fringe sector from early days and failing to realize that blockchain infrastructure is gradually integrating into mainstream finance. He describes the current crypto industry as having shifted from niche technology to a vital underlying framework supporting the next generation of financial markets, but this structural change has not yet been fully priced in.

Against the backdrop of a gradually clearer regulatory environment in the U.S., financial institutions are significantly deepening their exploration of crypto technologies, focusing on stablecoin issuance, asset tokenization, and on-chain settlement. With increased policy support, traditional banks and asset management firms are accelerating research into on-chain financial solutions, promoting the integration of digital assets with traditional capital markets.

The report also mentions that crypto market participants are slow to respond to the pace of institutional transformation. Repeated expectations of “institutional entry” over the past years have led some investors to become numb, underestimating the current real trends of capital and technological migration. Meanwhile, the on-chain tokenized asset market has approached hundreds of billions of dollars, covering core financial products such as U.S. Treasuries, funds, and commodities, with broad optimism about its growth potential.

Hougan emphasizes that the biggest mismatch in the current crypto market lies in the gap between perception and reality. As the mainstream financial system gradually moves on-chain, but the market has not fully reflected this long-term trend, digital assets, blockchain financial infrastructure, and tokenization sectors may still be in early-stage value discovery. This is also seen as an important window for medium- to long-term strategic positioning in the crypto market.