Bitwise Asset Management Chief Investment Officer Matt Hougan reiterated his optimistic outlook on Solana (SOL), arguing that the layer-1 blockchain presents investors with “two ways to win”, a dynamic he also attributes to Bitcoin’s long-term success.
1/ The best crypto investments give you two ways to win. A thread exploring one reason I’m so bullish on Solana.
— Matt Hougan (@Matt_Hougan) October 30, 2025
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Hougan posted a detailed thread on X Thursday, elaborating on why he believes Solana could play a central role in the fast-growing stablecoin and tokenization markets. He also issued a similar note to Bitwise clients earlier in the week, drawing comparisons between Bitcoin’s store-of-value narrative and Solana’s potential as a financial infrastructure layer.
Two ways to win: Bitcoin and Solana parallels
In his analysis, Hougan said he favors investments that provide “two ways to win,” using Bitcoin as the classic example.
“When I invest in Bitcoin, I’m betting that the global store-of-value market will grow and that Bitcoin will take an increasing share of that market,” he explained.
According to Hougan, the store-of-value market, estimated at $27.5 trillion, consisting of roughly $25 trillion in gold and $2.5 trillion in Bitcoin, has expanded tenfold over the past two decades. If that market were to double to $55 trillion while Bitcoin maintained its current 9% share, Bitcoin’s value would also double. Likewise, if Bitcoin’s share doubled to 18% while the market remained the same size, the outcome would be similar.
4/ If the store of value market grows over time—let’s say it doubles from $27.5 trillion to $55 trillion—bitcoin will also double, as long as it keeps its current 9% market share.
— Matt Hougan (@Matt_Hougan) October 30, 2025
Hougan said this dual growth dynamic could make long-term exposure to Bitcoin highly attractive. Extending the logic further, he said a similar “double engine of growth” now exists for Solana in the expanding world of stablecoins and tokenized assets.
Solana’s twin bets: growth of stablecoin and tokenization markets
“When I’m investing in Solana, I’m making two bets at once,” Hougan wrote. “First, that the stablecoin and tokenization infrastructure market will grow. Second, that Solana will win an increasing share of that market.”
He estimated that Ethereum currently dominates the space, with over $163 billion in stablecoin market capitalization and $85 billion in total locked value (TVL), according to DefiLlama data. Solana, by contrast, holds a $14.9 billion stablecoin market cap and around $11.3 billion TVL, placing it among the industry’s top challengers alongside Tron and BNB Smart Chain.
Solana’s relative size, roughly $107 billion in market capitalization, or 14% of the combined market across major layer-1s, presents an opportunity for outsized growth, Hougan argued.
“It’s a newer asset, still playing catch-up in winning institutional mandates, but it’s gaining ground,” he said.
Institutional adoption and network momentum
Hougan pointed to Western Union’s decision to build its new stablecoin settlement system on Solana as proof of growing institutional confidence. The financial services firm announced its plan earlier this week, adding further legitimacy to Solana as a payments and settlement infrastructure layer.
“It’s easy to imagine this market growing by 10x or more,” Hougan wrote. “If the market itself expands and Solana’s share within it also grows, the combination could be explosive — just as it has been for Bitcoin.”
He added that Solana’s appeal lies in its “fast, user-friendly technology, backed by a great community with a ship-fast attitude.” Those factors, Hougan believes, give it an advantage among developers and institutions building stablecoin and tokenization products.
Bitwise’s Solana ETF and growing investor interest
Hougan’s comments follow the recent launch of Bitwise’s U.S. spot Solana exchange-traded fund (ETF), BSOL, which debuted earlier this week. The ETF has attracted $116 million in net inflows over two trading days, the first U.S. fund offering 100% direct exposure to SOL.
Trading volume was also strong, with $57.9 million in day-one activity, the highest among all ETF launches this year, and nearly $75 million on day two. Bloomberg Senior ETF Analyst Eric Balchunas called the figures a “huge number,” reflecting growing investor interest in Solana as a mainstream digital asset.
Looking ahead
Hougan said Solana now represents one of the most compelling narratives in crypto, combining real-world adoption with accelerating institutional inflows and network activity.
“If I’m right, the combination of a growing market and a growing share of that market will be explosive for Solana,” he concluded. “Just as with Bitcoin.”
Roman Zaika
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