Bitwise CIO: Circle�...

Bitwise CIO: Circle’s Blockbuster IPO Underscores Need for Dual Crypto Strategy

By Jody McDonald June 12, 2025 In Bitwise, Circle, Cryptocurrency

bull market financial freedom by investing in bitcoin or crypto currencies concept with charts and analysis as wide banner design with copyspace area — Source:AdobeStock

Following Circle’s successful IPO last week, Bitwise CIO Matt Hougan said a well-balanced crypto portfolio should include both cryptocurrencies and publicly listed companies that leverage blockchains.
Hougan believes that due to the uncertainty around where the value in crypto will ultimately accrue, it’s important to have exposure across many facets of the industry.

Owning both cryptocurrencies and stocks in the companies leveraging blockchain technology, is a wise diversification strategy, according to Matt Hougan, Chief Investment Officer (CIO) of crypto asset management firm Bitwise. Hougan made the comments following Circle’s blockbuster initial public offering (IPO) last week.

In a June 10 blog post, he highlighted the ongoing uncertainty about where exactly most of the value in the blockchain industry will end up.

Once you move beyond bitcoin, one of the oldest—and most important—debates in crypto is this: Where will the value accrue?

Matt Hougan, CIO Bitwise

Hougan explained that it remains unclear whether the best long-term bet in crypto is on layer-1s like Ethereum and Solana — which provide the fundamental blockchain infrastructure — or on dApps built on top of these networks, like Uniswap or Polymarket.

Given this uncertainty, Hougan suggests having a diversified strategy, including public companies like Circle, which could benefit from the growth of both layer-1s and dApps.

Circle is a classic application play. It leverages the infrastructure of public blockchains, but it only pays a small fee for the privilege.

Matt Hougan, CIO Bitwise

“Put differently, Circle can issue a stablecoin on Ethereum for fractions of a penny, but it is immediately accessible by hundreds of millions of people in nearly every country in the world; can be transferred anywhere in the world almost instantly at very low cost; can be used in DeFi applications; can be programmed through smart contracts; and so on,” Hougan said.

Other publicly listed companies leveraging blockchain tech that Hougan thinks investors should take a closer look at include Coinbase, Galaxy and Mastercard. He believes the interplay between blockchains and the companies that build on them will be symbiotic, with each benefitting the other:

The core infrastructure will grow more valuable as more applications use it, and the applications will become valuable as the infrastructure continuously improves.

Matt Hougan, CIO Bitwise

He added that “it’s impossible to know whether more value will accrue to the blockchains themselves or the companies that are building on them.” Hougan was clear on how he thinks investors should handle this uncertainty: “I think the best way forward is to own them both.”

Circle is the issuer of the USDC stablecoin, the second-largest (and according to some, the most trustworthy) stablecoin. The company went public last Thursday with an extremely successful IPO.

According to Hougan, the offering was 25x oversubscribed, meaning “institutional investors asked to buy 25 times more CRCL stock than the company wanted to sell.”

When the stock started trading its value immediately soared, closing its first day at US$105 (AUD$161) — a single day increase of 167% over the offer price of US$31 (AUD$48) institutional investors bought in at. At the time of writing, Circle shares were changing hands at just under US$117 (AUD$180).

Hougan believes stablecoins are emerging as “crypto’s second killer app, after Bitcoin”. In the past five years, the total value of stablecoins under management has grown from US$4 billion (AUD$6b) to around US$250 billion (AUD$384b), with the US Treasury forecasting this figure could top US$2 trillion by 2030 (AUD$3t).