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Month: April 2025

Matt Hougan, Bitwise, Fund Shack podcast

Bitcoin: The Alternative You Can No Longer Ignore | Matthew Hogan, Bitwise | Ep 72

In this episode of Fund Shack, Ross Butler speaks with Matthew Hougan, Chief Investment Officer at Bitwise Asset Management, the firm that launched the first crypto index fund and now oversees over $10 billion in assets. Previously CEO of ETF.com and chairman of Inside ETFs, Matthew has been at the vanguard of two financial revolutions: exchange-traded funds and now crypto investing.

They explore why Bitcoin is no longer an asset institutional investors can afford to ignore, why it fits comfortably into modern portfolios, and how it is evolving into a global macro asset, one that could redefine value, collateral, and even the foundations of finance itself.

From Retail Phenomenon to Institutional Essential

Bitcoin has long been dismissed as a retail-driven speculation. But institutional adoption is accelerating fast. Since 2023, US Bitcoin ETFs have amassed over $37 billion in assets, eclipsing every ETF launch in history. A third of that capital is institutional, and Bitwise alone has seen its AUM tenfold in just 18 months.

Institutions are realising that Bitcoin, when stripped of its reputation, offers a compelling asset profile: high historical returns, low correlation with stocks and bonds, deep liquidity, and rising relevance in macro portfolios.

Rethinking Bitcoin’s Role in the Portfolio

Many asset allocators are re-examining where Bitcoin fits. Some bucket it within high-beta equities or emerging tech. Increasingly, though, it’s being treated as an alternative asset due to its unique risk-return characteristics and lack of correlation.

Institutions are beginning to see that a 1–2% Bitcoin allocation can materially improve a portfolio’s Sharpe ratio. For the first time, regulatory clarity and ETF wrappers allow them to express that view efficiently, with custody, liquidity and compliance challenges largely solved.

Bitcoin as Digital Gold… and More

Bitcoin is optimised not for speed or smart contracts, but for decentralised value storage. Its clearest comparable is gold, yet it improves on it by being portable, programmable, and verifiable in real time. Today, Bitcoin’s market cap is under $2 trillion; gold’s is over $21 trillion. That gap represents upside for investors who believe in the digital gold thesis.

But Bitcoin isn’t just a store of value. It’s a non-political currency in a fragmenting world. As global trade moves away from sole reliance on the US dollar, Bitcoin could become a neutral bridge currency, used by countries that want a settlement mechanism free from geopolitical alignment.

A Macro Asset in the Making

Macro hedge funds increasingly use Bitcoin for after-hours positioning, risk-on trades, and global hedging. It trades 24/7, settles instantly, and provides pristine collateral, all features traditional finance struggles to match.

Bitwise’s own ETFs give institutions this exposure in a low-cost, fully regulated wrapper, with Coinbase custody, cold storage, and full on-chain visibility.

Looking Ahead: Finance on the Blockchain

Bitcoin’s potential doesn’t stop with passive holding. The crypto ecosystem is already redefining capital markets. On-chain lending, instant collateralised loans, and programmable money are standard in decentralised finance. For traditional dealmakers and credit investors, this foreshadows faster, more transparent, and radically more efficient transaction rails.

Hougan believes traditional finance is slowly merging with this future. Complexity is not a flaw but a sign of technological evolution. In time, Bitcoin’s programmability and security could replace many financial intermediaries, not just as an asset, but as a layer of infrastructure.

Advice for Professionals and Allocators

For financial professionals, Matthew’s message is simple: start experimenting. Buy Bitcoin. Try DeFi. Use it as tuition for a new era of finance. He draws a parallel to the ETF boom, those who got in early didn’t just profit; they rewrote the rules.

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Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.

Cyril Demaria, Fund Shack, private wealth

The complexities of introducing private markets to HNWs | Cyril Demaria | Ep 71

In this episode of Fund Shack, Ross Butler is joined by Cyril Demaria-Bengochea, Head of Private Market Strategy at Julius Baer, Associate Professor at EDHEC Business School, and author of multiple leading books on private equity. Cyril has worked as an expert for Invest Europe, ILPA, and the European Commission, and he brings a unique perspective that combines academic rigour with practical industry insight.

Together, they explore the ongoing transformation of private markets, focusing in particular on the challenges, and limitations, of accessing capital from private wealth clients.

A shift from institutions to individuals

Institutional capital has long been the cornerstone of private markets, but fund managers are increasingly turning their attention to the private wealth segment. However, as Cyril points out, this market is fundamentally more complex. Individual investors are highly heterogeneous, each with unique goals, constraints, and levels of financial sophistication.

The Challenge of Democratisation

Much has been made of the “democratisation” of private equity, but Cyril believes the term may be misleading. True access remains limited, especially when trying to balance diversification, cost-efficiency, and liquidity. Although evergreen structures have been hailed as a solution, Cyril estimates they still represent just 1–2% of total assets under management in private markets—highlighting how early-stage the trend really is.

Private Markets: A Three-Dimensional Investment

One of the major hurdles for private wealth clients is understanding the time dimension of private markets. Unlike traditional public investments, private equity involves long holding periods, delayed distributions, and a lack of liquidity. Cyril argues that much of the complexity in private markets stems from this third dimension—and that many investors (and advisers) still struggle to properly account for it in portfolio construction.

Fund Structures: No One-Size-Fits-All

While closed-end funds remain the dominant structure for good reason—offering embedded discipline and clear payout timelines—other structures are growing in relevance. Cyril sees increasing use of evergreen and semi-liquid structures, particularly for clients seeking operational simplicity.

Rather than any one structure “winning,” he envisions a world where different vehicles coexist and serve different needs. The key is understanding the investor’s objectives and building a tailored toolbox that balances access, complexity, and outcome alignment.

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Subscribe Now on your preferred platform to gain expert insights into private capital.

Contact Information: About Fund Shack: Fund Shack is a private equity podcast and digital media channel for alternative investment professionals. Fund Shack is produced by Linear B Group Limited.