Bitwise CEO predicts tokenization may revolutionize equity markets

Bitwise Asset Management CEO Hunter Horsley predicted that tokenization, artificial intelligence (AI), and “Bitcoin Standard Corporations” will be major themes in the market in 2025.

He also said tokenization is likely to revolutionize equity markets by democratizing access for smaller businesses.

In a January 4 X post, Horsley said that “people have focused on the demand side” up until now when it comes to tokenization. He noted that “there’s value there,” before adding that he thinks “the demand side is potentially not the revolutionary story.” 

The true potential of tokenization is on the supply side

Up until now, much of the discussion around tokenization has been centered on its demand-side benefit, such as enabling investors in the retail market to gain access to money market funds. 

However, Horsley believes the real potential of tokenization lies in the supply side. According to the Bitwise Asset Management CEO, tokenization offers a new avenue for small and medium-size businesses to get exposure to capital markets. 

“Today, there are around 4,600 companies in the US that are able to access the public equity markets,” he noted in the X post. There are also around 200,000 companies in the US that are generating over $10 million in revenue, he added. 

Many of these companies, according to Horsley, want to go public but lack the necessary scale. He believes that the supply side of tokenization could be a “revolutionary new possibility” for companies that don’t currently have the scale required to go public. 

AI could trigger a wave of micro companies

Horsley also shared a prediction for the emerging artificial intelligence (AI) space. He expects “an explosion of companies” in the sector soon.

Corollary thought:

I think AI may lead to an explosion of companies, and tokenized companies.

The theory:
– A single person can use AI to make a much more niche version of a software service- eg mobile only CRM for independent electricians that need to conform to California… https://t.co/NLmOD1vGBo

— Hunter Horsley (@HHorsley) January 4, 2025

“AI could massively increase the number of niche businesses,” the Bitwise CEO said. Although he believes these AI companies “could never go public,” he speculates they could benefit from tokenization and potentially form part of a “major new long-tail capital market.”

2025 will be the year of ‘Bitcoin Standard Corporations’

Along with the tokenization and AI predictions, Horsley also said that 2025 could be the year “Bitcoin Standard Corporations” capture investors’ attention. 

The pioneer in this space is MicroStrategy, steered by executive and BTC bull Michael Saylor. Since 2022, the software firm has been aggressively accumulating Bitcoin.

Saylor once again posted a picture of the SaylorTracker chart on Sunday. In the past, these posts have been followed by an announcement of a MicroStrategy Bitcoin buy.

Other companies have started to follow MicroStrategy’s lead in adding BTC to their balance sheets. Japan-based Metaplanet has also recently expressed intentions to buy Bitcoin. 

11 publicly traded companies bought more Bitcoin since last Monday according to @HODL15Capital

2025 is going to see a lot of corporations joining the Bitcoin standard. @saylor has written the playbook for a movement. https://t.co/gZ9Jk2oV4B

— Hunter Horsley (@HHorsley) January 5, 2025

Horsley predicted that “a lot” more companies will join the “Bitcoin standard” in 2025.

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