Funds that monitor a basket of cryptocurrencies are more likely to rocket in reputation subsequent yr as buyers look to get straightforward publicity to a broader vary of digital property, in accordance with Bitwise’s funding chief Matt Hougan.
“Crypto index funds are going to be an enormous deal in 2026,” Hougan mentioned in a notice on Monday. “The market is getting extra advanced and the use instances are multiplying.”
He added that whereas the general crypto market is poised to develop, it isn’t doable to foretell which tokens will carry out, so proudly owning a fund that tracks the market is a “excellent place to start out,” though it’s “not proper for everybody.”
Many exchange-traded fund issuers, together with Bitwise, supply funds that monitor a number of cryptocurrencies, drawing inspiration from indexes such because the S&P 500, which monitor the highest 500 corporations on US inventory exchanges.
Multi-crypto ETFs exist already, with some going dwell within the US earlier this yr that maintain crypto in proportion to every token’s market capitalization. Nevertheless, these have seen comparatively modest inflows as they largely maintain Bitcoin (BTC), which at present dominates almost 60% of the market, per CoinGecko.
“Purchase the market” as crypto is unknowable
Hougan mentioned that regardless of his expertise and community of specialists inside crypto, he can’t say “with confidence which chain will win, or exactly how issues will end up.”
“At this stage of crypto’s growth, I’d argue it’s unknowable,” he added. “Outcomes can be formed by regulation, execution, macro situations, the actions of some key people, luck, and 100 different variables.”
“Forecasting all of that appropriately would require supernatural foresight.”
Crypto markets rallied from November 2024 to January by Donald Trump’s presidential election and inauguration and have remained elevated on his pro-crypto insurance policies.
Nevertheless, crypto has felt the unfavourable results of sweeping US tariffs and uncertainty over additional rates of interest cuts as conventional finance turns into extra concerned out there.
“Provided that uncertainty, my strategy is easy: I purchase the market,” Hougan mentioned. “Particularly, I purchase a market-cap-weighted crypto index fund.”
He added that crypto “can be much more vital in 10 years than it’s right now,” and the market might develop as much as 20 occasions over that point.
Hougan pointed to Securities and Alternate Fee chair Paul Atkins’ touch upon Wednesday that the US monetary system might embrace tokenization in a “couple of years.”
The US fairness market is a ~$68 trillion market. We at present have ~$670 million in tokenized shares. https://t.co/IgyJ20oiar
— Matt Hougan (@Matt_Hougan) December 8, 2025
Associated: Financial institution of America backs 1%–4% crypto allocation, opens door to Bitcoin ETFs
“Stablecoins will matter extra. Tokenization will matter extra. Bitcoin will matter extra. And I feel a dozen different main use instances will comply with: prediction markets, decentralized finance (DeFi), privateness tech, digital id,” Hougan mentioned.
“I don’t need to danger selecting the improper chain,” he added. “Think about appropriately calling a market that goes up 100,000x—and nonetheless underperforming since you backed the improper horse.”
“So I exploit a crypto index fund because the core of my portfolio,” Hougan mentioned, “realizing that, nonetheless crypto evolves, I’ll personal publicity to the potential winners.”
Journal: Solana vs Ethereum ETFs, Fb’s affect on Bitwise — Hunter Horsley
