Advertisement
Crypto Index Funds Set to Explode in 2026 as Investors Seek Broad, Simple Market Exposure
- Bitwise CIO Matt Hougan predicts that crypto index funds will become significantly more popular in 2026 as the crypto market grows larger and more complex.
- Hougan argues that these funds offer investors a simple way to gain broad market exposure instead of attempting to pick individual winning assets.
- He noted that existing multi-crypto ETFs are currently too heavily dominated by Bitcoin (which represents around 60% of the market) to offer truly diversified exposure.
Bitwise’s CIO, Matt Hougan, believes crypto index funds are likely to become much more popular in 2026, mostly because the crypto market is getting bigger and more complex.
This means a lot of investors will prefer a simple way to get broad exposure instead of trying to pick individual winners. In a recent article, Hougan discussed his views on the market, particularly how crypto index funds are just like a stock index fund, like the S&P 500, but instead they hold a basket of different crypto assets and try to mirror some particular index or rule set.
Crypto index funds are going to be a big deal in 2026. The market is getting more complex and the use cases are multiplying. They’re not right for everyone, but for a lot of folks—including yours truly—they’re a great place to start.
Matt Hougan, Bitwise CIO. Related: Canada’s Tax Agency Flags Massive Crypto Non-Compliance but Brings Zero Charges Since 2020
Multi-crypto ETFs that hold several coins already exist, including some in the US that launched earlier this year and are allocated based on each token’s market cap. Those funds haven’t attracted huge inflows yet because, in practice, Hougan argues, they are mostly Bitcoin with a small allocation to everything else, since Bitcoin still makes up around 60% of the total crypto market.
In other words, if your “basket” is dominated by one asset, it isn’t that different from just owning that one asset directly.
Crypto Will Be More Important In Ten Years From Now
Besides crypto index funds, Hougan shared his thoughts on the stablecoin market and tokenisation, as well as popular trends, like prediction platforms and privacy tech.
Stablecoins will matter more. Tokenization will matter more. Bitcoin will matter more. And I think a dozen other major use cases will follow: prediction markets, decentralized finance (DeFi), privacy tech, digital identity, new forms of equity, and more.
In my view, the overall crypto market could grow 10–20x over the next decade without breaking a sweat.
Matt Hougan, Bitwise CIO. Read more: WisdomTree Debuts On-Chain Fund Bringing Options Income Strategy to Blockchain
Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
