Key Developments in Crypto Capital Formation
The cryptocurrency industry may be entering a new chapter of capital formation, according to Matt Hougan, Chief Investment Officer of Bitwise Asset Management. In a note to clients released late Tuesday, Hougan suggested that a fresh wave of compliant initial coin offerings (ICOs) could serve as a major driver of the next crypto bull market.
Hougan highlighted the launch on November 10 of Coinbase’s new token sale platform as a milestone, describing the initiative as signalling “the start of a new, regulated era for initial coin offerings.”
He framed capital formation—the process by which entrepreneurs raise money, build new ventures, and create jobs—as a fourth foundational pillar of crypto’s disruption of traditional finance, following bitcoin’s reinvention of gold, stablecoins’ reinvention of dollars, and tokenization’s reinvention of trading and settlement.
“These are each multitrillion-dollar opportunities, and enough to power a bull market in crypto for a generation,” Hougan wrote. “I expect that eventually most assets will be tokenized, most dollars will move on stablecoin rails, and bitcoin will be as widely accepted as gold.”
What’s Different This Time: Regulation and Structure
Hougan noted that ICOs are not a new concept. The boom of 2017–2018 allowed projects to raise capital directly via token sales, but it largely collapsed amid fraud and regulatory crackdowns. The key difference today, he said, is stronger regulation and structured frameworks.
He pointed to calls from Securities and Exchange Commission (SEC) Chair Paul Atkins for safe harbors and compliant token-offering regimes, and highlighted Coinbase’s platform, which will list one fully vetted crypto project per month under strict disclosure requirements and lock-up restrictions for insiders. The first project listed will be Monad (MON), with its token sale slated for November 17–22 ahead of its mainnet launch on November 24.
“In short, through self-regulation, it aims to fix a lot of what was wrong with the 2017–2018 ICO era,” Hougan said.
Outlook and Implications for the Crypto Market
Looking ahead, Hougan predicted that the compliant ICO model could generate “a half-dozen or more billion-dollar ICOs” in 2026, potentially rivaling parts of the traditional IPO market. By comparison, in 2024, there were 176 U.S. IPOs raising a collective $33 billion.
For entrepreneurs, the model could provide lower-cost capital and more direct retail-investor access. For platforms, Hougan named Coinbase as a key beneficiary, describing it as “not just the Charles Schwab of crypto; it’s Charles Schwab + Goldman Sachs + NYSE.” He also noted that large programmable blockchains such as Ethereum and Solana may benefit by hosting many of these new projects.
From a broader market perspective, Hougan said that if the ICO-renaissance narrative plays out, it strengthens the case for crypto exposure because the ecosystem has matured with stablecoins and tokenization already present.
“Crypto is more interesting today than it was a few years ago because we’ve added stablecoins and tokenization to its story. If we start seeing billions more raised through rapid ICOs, that story will only get stronger.”
Acknowledging Risks and Caution in Crypto Investing
Hougan’s note also pointed to the risks in crypto investing. Crypto investing carries significant risks. Prices can move sharply, rules vary between countries, and investors without experience or a high tolerance for risk face real challenges. Past ICO failures, regulatory crackdowns, and the absence of consistent global rules continue to make the market difficult to navigate.
Bitwise says that regulated, compliant token offerings could change how crypto projects raise capital. It’s still unclear whether this approach will fuel a lasting bull market, but it does mark a notable shift in how new crypto ventures connect with investors.