Bitwise Sees Regulated ICOs Driving Crypto Growth in 2026
Matt Hougan, Chief Investment Officer at Bitwise, predicts a new wave of regulated initial coin offerings (ICOs) will boost crypto capital formation in 2026.
In a recent note to investors, Hougan described capital formation as the next key theme in crypto. Capital formation means raising funds to launch companies and new products.
Lessons from the 2017–18 ICO Boom
Hougan recalled the 2017–18 ICO surge, when retail investors could fund early-stage crypto projects. However, lack of regulation led to fraud and many failed projects. This caused the US Securities and Exchange Commission (SEC) to intervene aggressively in 2018.
The crackdown on ICOs led to a market downturn, but Hougan believes a new, regulated ICO phase is coming. He cited SEC Chair Paul Atkins, who supports safer ICO frameworks. In July, Atkins called for rules and protections to support high-quality ICOs.
Regulated ICOs Could Spark New Growth
- Coinbase recently announced a token sale platform, signaling renewed activity in regulated ICOs.
- Hougan expects multiple billion-dollar ICOs on platforms like Coinbase in 2026.
- For comparison, US IPOs raised $33 billion across 176 deals in 2024.
- Coinbase could become a leading player, similar to Charles Schwab or the NYSE in traditional finance.
- Popular blockchains such as Ethereum and Solana may host many of these new projects.
Overall, Hougan sees the ICO revival as a sign that crypto continues to evolve. The trend could reshape how startups raise money and innovate in finance.
For more details, visit the Bitwise CIO memo.
