Bitwise CIO Says Crypto Index Funds Will Be “A Huge Deal”

Bitwise Chief Funding Officer (CIO) Matt Hougan says that crypto index funds, which give buyers the chance to purchase right into a basket of property, might be “a giant deal” in 2026.

“The market is getting extra complicated and the use instances are multiplying,” Hougan stated in a current observe to buyers, including that crypto index funds scale back the chance that buyers will miss out available on the market’s 10X progress potential.

Trade Nonetheless Divided Over Crypto’s Future

Hougan stated that it’s tough to say what the long run will seem like for the digital asset house.

For instance his level, he highlighted the talk round Solana versus Ethereum. He famous that on one hand, members of the crypto group say that Ethereum is best and that it’ll dominate the market. Then again, there are those who say Solana is poised to overhaul Ethereum in the long run. 

Crypto index funds are set to realize main traction in 2026, says Bitwise’s Matt Hougan.

Because the crypto market turns into extra complicated, these funds provide diversified publicity, decreasing danger in comparison with single-asset ETFs.

Count on progress amid evolving use instances and regulation!#Crypto pic.twitter.com/sMi9NkHpcj

— Crypto Hawk (@CryptoKelvin12) December 9, 2025

Hougan additionally talked about the argument by some within the crypto group that Bitcoin is the one digital asset that issues. 

He stated that even together with his in depth community within the digital asset house, which incorporates VCs, founders, researchers and foundations who all repeatedly focus on concepts with him, he nonetheless can’t confidently say “how issues will prove.”

“At this stage of crypto’s improvement, I’d argue it’s unknowable,” he added.  

Hougan stated {that a} mixture of things will decide the result of the crypto market. This contains regulation, execution, macro situations, the actions of key people, luck, and 100 different variables,” he stated. 

“Individuals who declare certainty are, I believe, fooling themselves,” he argued. 

Crypto Index Funds The Solely Means To Seize All Of The Market’s Progress, Hougan Says

Hougan predicted that the crypto market as a complete may develop 10-20X “over the following decade with out breaking a sweat.”

He added that his “highest-conviction guess in crypto” is that the digital asset market “might be way more vital in 10 years than it’s at the moment.” 

Hougan then talked about a current interview that US Securities and Trade Fee (SEC) Chair Paul Atkins had with Fox Enterprise. Within the interview, Atkins stated he expects all US fairness markets to maneuver onchain “in a few years.” 

That interprets to roughly $68 trillion in equities, Hougan stated, noting that the present tokenized shares market has a mixed capitalization of simply $670 million. 

Tokenized inventory market overview (Supply: RWA.xyz)

Nonetheless, he stated that it will likely be tough for buyers to identify the alternatives out there that can put up substantial progress and result in simply as giant positive aspects. 

“Think about appropriately calling a market that goes up 100,000x—and nonetheless underperforming since you backed the flawed horse,” he stated. 

Because of the complexity within the house, Hougan says that his funding method for crypto is to “purchase the market.” To do that, he says he invests in market-cap weighted crypto index funds. The Bitwise CIO then makes “particular person bets across the edges.” 

He acknowledged that crypto index funds may not be the appropriate match for each investor. Nonetheless, he says that for a lot of, together with himself, they’re a “great spot to begin.” 

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