Bitcoin Set to Outshine Gold and Reach $1 Million by 2029, According to Fund Manager

Matt Hougan, Chief Investment Officer (CIO) of Bitwise Asset Management, presented a remarkable long-range prediction for Bitcoin during the latest episode of the Coinstories podcast. In conversation with host Nathalie Brunell, Hougan shared his insights on why he believes that BTC will not only challenge gold but also rise to $1 million per coin by 2029. He ascribed this optimistic outlook to swift institutional adoption, newfound regulatory clarity, and sustained long-term demand outpacing new supply.

Why Bitcoin Might Reach $1 Million By 2029

During the discussion, Hougan emphasized the significant effect of spot Bitcoin exchange-traded funds (ETFs) as a key contributor to institutional investments. He noted that the influx of fresh capital following the ETFs rollout in January 2024 was substantially greater than what most analysts had predicted. “Before the Bitcoin ETFs were introduced, the most successful ETF in history collected $5 billion within its first year,” he stated. “These [Bitcoin] ETFs attracted thirty-seven billion.”

He further mentioned that this remarkable rate of inflows is likely to persist, primarily because “fewer than half of all financial advisors in the US can even engage in a proactive discussion” about investing in Bitcoin currently. Once barriers are removed and additional advisors can endorse Bitcoin to their clients, he anticipates an even larger influx of assets.

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When queried regarding the competition among leading ETF providers, Hougan emphasized that BlackRock’s entrance into the sector ultimately benefits the whole industry by enhancing overall engagement. He pointed out that his company, Bitwise, is dedicated to catering to the needs of both institutional investors and cryptocurrency experts who seek a “crypto-native” manager.

Although Bitwise’s spot Bitcoin ETF was launched concurrently with various other notable participants, Hougan expressed that he perceives the intense competition as advantageous for investors, as it has driven fees to “rock bottom.” He remarked that the management fees of his firm are lower than those of many traditional commodity ETFs, concluding, “It’s an exceptional deal for the investor.”

In addition to these significant transformations in institutional finance, Hougan also highlighted the swift growth of stablecoins. He referred to them as a “killer app,” citing the global demand for more affordable and efficient transaction channels and explaining that stablecoins, which operate on blockchains, can enhance cross-border monetary flows.

He foresees a stablecoin market reaching trillions in the upcoming years, especially if favorable regulatory frameworks are established. While he recognized that the United States may implement policies that dictate whether stablecoin issuers should hold short- or long-term treasuries, he expressed optimism that the market would remain sufficiently open to encourage ongoing competition and innovation.

The dialogue also explored the increasing corporate interest, which Hougan mentioned encounters challenges such as “peculiar accounting regulations,” yet has shown resilience. He pointed out how businesses “acquired hundreds of thousands of Bitcoin last year” and believes these early adopters signal a larger trend once accounting and due diligence matters are resolved.

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According to his firm’s private polls, there exists a notable discrepancy between advisers’ personal enthusiasm for Bitcoin—where “over 50%” already own it—and the approximately 15–20% who can officially allocate it for client portfolios. That figure, he forecasts, will continue to increase as internal committees grant advisers approval and as more institutions grasp that “if you have a zero percent allocation to crypto, you’re effectively short.”

Regulatory Changes And The Washington Influence

Throughout the interview, Hougan consistently emphasized that the market might be “underestimating the changes in Washington.” He recounted how, until very lately, banks were reluctant to accept deposits from cryptocurrency firms and how numerous subpoenas, legal actions, and the threat of “being debanked” had a chilling effect on industry expansion.

Hougan asserts that “unless you’ve been involved in cryptocurrency over the past four years, you can’t comprehend how difficult it was,” and that the government’s more lenient position now eliminates a significant barrier to capital inflows. He also perceives bipartisan backing for stablecoin legislation as a strong indication of upcoming regulatory clarity.

Beyond regulations, Hougan proposed that Bitcoin is prepared to thrive in a macroeconomic environment laden with uncertainty. He mentioned potential scenarios of rampant inflation or a sudden deflationary collapse as concerns that people harbor, asserting that “if you observe the market, it’s more volatile or susceptible or uncertain than it has been previously.”

From his viewpoint, even a modest allocation toward bitcoin offers a non-sovereign safeguard against possible monetary or fiscal instability. He conveyed that many of Bitwise’s substantial clients…clients are exploring strategies for generating returns on their Bitcoin—whether via derivatives or institutional lending—so they can retain exposure without liquidating the asset itself. He contends that this interest represents the strong conviction levels that are often seen in the crypto community.

Hougan’s insights returned to the influence of Bitcoin’s limited supply and increasing institutional appetite. He remarked that Bitcoin’s restricted issuance timeline, combined with new buyers vastly outpacing the quantity of new bitcoin mined, will likely continue to drive the price upward as time progresses. “I believe Bitcoin is on the path to challenging gold,” he stated. “We anticipate it will surpass a million dollars by 2029.” While he acknowledged that daily price fluctuations can be significant, he remains confident that the long-term fundamentals are robust.

At the time of writing, BTC was valued at $84,138.

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