Bitwise CIO makes the case for new AVAX ETF launch

Bitwise says Avalanche deserves a place alongside larger blockchain networks, arguing that its model offers differentiated exposure to the long term growth of tokenized assets, stablecoins, and onchain finance just after launching its Avalanche fund on April 15.

In his latest CIO memo, Matt Hougan said Avalanche is attractive not because it already dominates the Layer 1 market, but because it approaches blockchain design differently from Ethereum and Solana. Rather than operating as a single shared chain, Avalanche lets firms and institutions launch their own customizable blockchains with their own rules, validators, and access controls.

Hougan framed that model as especially relevant for banks, governments, gaming firms, and other regulated entities that may want blockchain infrastructure without fully adopting the operating model of a public chain.

He tied that thesis to growing institutional activity on Avalanche, noting that tokenized real world assets on the network have climbed sharply and that the ecosystem has drawn partners including BlackRock, Apollo, Toyota, the State of Wyoming, and FIFA. Hougan argued that this gives Avalanche a credible shot at capturing part of a much larger market if hundreds of trillions of dollars in assets eventually move onchain.

Hougan also used the memo to make a broader portfolio point. In an early and fast moving Layer 1 market, he said the most sensible approach is not pretending to know the final winner, but focusing on the networks with the clearest structural differences and the most realistic path to long term relevance. In his view, that group starts with Ethereum, Solana, and XRP, and extends to Avalanche.