Bitwise's Matt Hougan Names Robinhood, Solana, Uniswap And Ethereum As His Tokenization Basket

Bitwise CIO envisions tokenization spreading beyond crypto into a possible $500 trillion asset market.

• Bitwise CIO Matt Hougan has long held a broad basket of Robinhood, Solana, Uniswap, and Ethereum.
• Hougan termed it a probable buy and a 10-year hold on Robinhood.
• Hougan said he was also bullish on Coinbase and is betting on traditional finance firms that fight tokenization.

Investors should spread their bets across a number of firms in the tokenization trade rather than going all-in on one company, said Bitwise Chief Investment Officer Matt Hougan, who pointed to a basket of Robinhood Markets (HOOD), Solana (SOL), Uniswap (UNI) and Ethereum (ETH) that he likes.

In an interview with Paul Barron on Friday, Hougan said the transition to tokenized rails would happen regardless of regulatory scheduling but the details of how it plays out are still too fuzzy to make single-asset positions problematic. He used Solana as an example of a concentrated bet, stating it was probably unwise to put all your chips in one network and stop there, while still listed the same token among the four he wishes to possess. 

Uniswap still had an asset valuation of around $5 billion, Hougan claimed, a valuation that appeared wrong by a factor of 10. The fee burn for the protocol is $120 million to $130 million on a yearly basis, he said, which could be outdated. 

UNI’s price was up over 0.2% in the last 24 hours, with the token rallying about 150% in the last 3 months. On Stocktwits, retail sentiment around UNI remained in the ‘extremely bullish’ zone, with chatter stayed at ‘high’ levels over the past day. 

Ethereum’s price was trading around $2,457, up 0.2% in the last 24 hours, with the token rallying about 51% in the last 3 months. On Stocktwits, retail sentiment around ETH remained in the ‘bearish’ zone, accompanied by ‘normal’ chatter levels over the past day. 

Solana’s price was trading $102.87, up over 1% in the last 24 hours, with the token rallying about 58% in the last 3 months. On Stocktwits, retail sentiment around SOL dropped to the ‘bearish’ zone from the ‘neutral’ zone, accompanied by ‘normal’ chatter levels over the past day.

Calls Robinhood A Decade-Long Hold

Hougan reserved his strongest words for Robinhood. If he had to pick one financial stock to buy and hold for 10 years, it would be Robinhood, he said. He said the corporation was becoming a financial monster, and had proved it could reinvent itself time and time again.

The switch bucked his own long-held belief that each generation gets one brokerage and sticks with it — the way Robinhood is to millennials what E*Trade was to Generation X and Charles Schwab was to baby boomers, he added. At the same time, he said, the firm was going upstream to richer consumers, and into the institutional advising area through acquisitions.

Hougan said he will be long Robinhood and Coinbase (COIN) and short the traditional finance companies that aren’t trying the transition. He said Coinbase's stance was an easy fix, adding the company can be slow at times, but it gets the job done.

And he noted a lot of the growth came from activity on Robinhood Chain, noting that penetration was still early, especially for U.S. customers. Rival brokerages, he claimed, would see Robinhood developing what he called a billion-dollar business in months and would attempt to copy the technique, bringing DeFi protocols such as Uniswap, Morpho and Aerodrome into its go-to-market.

Investors were underestimating the extent of the opportunity, Hougan said. “This is not a $2 trillion market. This is a $500 trillion market,” Hougan added, including mortgages, home equity loans and cross-border finance, said Hougan.

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