Fund Manager Says This Is The Cryptocurrency Secret 'That Very Few People Know'

Bitcoin BTC is on pace for its worst weekly close since mid-June as the price continues to trend lower, nearing the $30,000 level.

The Bitcoin fever hasn't broken, Bitwise Asset Management CIO Matthew Hougan said Friday on CNBC's "Squawk On The Street."

Bitwise focuses on the financial advisor market and that market is making a two- to five-year move into cryptocurrency, Hougan said, adding that inflows at Bitwise have shown continued strength. 

What's Going On With Crypto? The cryptocurrency market is experiencing a brief period of uncertainty amid regulation expectations and the mining crackdown in China, he said. 

Hougan told CNBC that the recent concerns around cryptocurrency inevitably induce volatility into the markets short-term, but will turn out to be positive in the long-term. 

It's important for investors to understand that cryptocurrency is a long-term play, he said. As investors extend their time horizons, investment risk decreases, Hougan added. 

Regulation Concerns: The lack of regulatory clarity is the main thing stopping people from investing, Hougan said.

A digital dollar would be a great thing for crypto, he said, adding that the market would still need digital gold and Ethereum ETH/USD serving as the "new internet of finance."

The secret that very few people know is that regulatory clarity is "the single-most positive driver of a future bull market," Hougan told CNBC. 

See Also: Blockchain Blocks: What You Need to Know About Wrapped Bitcoin

Price Action: Bitcoin is up 9.92% year-to-date. Ethereum is up 160.46% year-to-date. 

At last check Friday, Bitcoin was up 1.13% at $32,227.40 and Ethereum was up 1.08% at $1,938.70.

Photo by Serg Dementev from Pixabay.