Bitwise CIO says tokenization could expand crypto market to $500T

The cryptocurrency market could grow into a market worth as much as $500 trillion, driven by the tokenization of traditional financial assets, and investors are underestimating that potential, Bitwise CIO Matt Hougan said in a recent memo to investors. Hougan said crypto investors are making three mistakes: viewing crypto apps only as crypto-native services, assuming major traditional financial firms will naturally beat crypto companies, and underestimating future trading volumes by 10 to 100 times. He added that if traditional financial assets such as stocks and bonds are tokenized, the addressable market for crypto apps could expand from about $2 trillion to $500 trillion.