A leading executive at digital asset investment firm Bitwise Asset Management said on Tuesday that the overwhelming majority of cryptocurrencies would disappear in the near future.
Speaking on a Bloomberg podcast, Matt Hougan, Global Head of Research at the firm, said that 95 percent of cryptocurrencies are going to fail.
“95 percent of [cryptocurrencies on the market],” said Hougan, “will die a painful and deserved death.”
But it’s not all doom and gloom in the world of blockchain.
Hougan also said that Bitwise plans on taking advantage of those failing firms.
Prior to joining the asset management firm, Hougan worked heavily on exchange-traded funds (ETFs).
In fact, working for ETF.com, the Bitwise executive saw ETFs rise from being something of a new idea to being a multi-trillion dollar market.
Significantly, he worked on developing the world’s first ETF ratings and analytics service.
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Bitwise crypto ETF
Though it may be focusing on cryptocurrencies, as opposed to the broader financial markets, Bitwise is still working on something akin to an ETF.
The company claims to have launched the first cryptocurrency index fund in the world.
And on top of that, Hougan is going to be working on developing the company’s cryptocurrency ETF.
That ETF will be comprised of ten different cryptocurrencies.
Whether or not that will be successful remains to be seen.
The Securities and Exchange Commission has repeatedly rejected applications to create a cryptocurrency ETF.
Just a couple of weeks ago, Cboe withdrew its application to establish an ETF with the SEC.
Representatives of the SEC have said in the past that the American regulator is unlikely to give its approval to a cryptocurrency ETF until the market stabilizes.