Funds tracking a basket of cryptocurrencies are likely to surge in popularity next year as they give investors easier access to a wider range of digital assets, according to Matt Hogan, head of investments at Bitwise.
“Crypto index funds will be a big deal in 2026,” Hogan said in a note on Monday. “The market is becoming more complex and the use cases are increasing.”
He added that while the overall crypto market is trending towards growth, it is impossible to predict which tokens will perform how, so owning a fund that tracks the market is “not right for everyone” but is “a great place to start.”
Many exchange-traded fund issuers, including Bitwise, offer funds that track multiple cryptocurrencies, taking inspiration from indexes such as the S&P 500, which tracks the top 500 companies on U.S. stock exchanges.
Multi-cryptocurrency ETFs already exist, and one that started operations in the US earlier this year holds cryptocurrencies in proportion to each token's market capitalization. However, according to CoinGecko, these are primarily holding Bitcoin (BTC), which currently controls nearly 60% of the market, so the inflow has been relatively slow.
Cryptocurrency is unknown, so “buy the market”
Hogan said that despite his experience in the crypto industry and network of experts, “we cannot say with confidence which chain will win or exactly what will happen.”
“I would argue that at this stage of the development of cryptocurrencies, it is impossible to know,” he added. “Outcomes will be shaped by regulation, enforcement, the macro environment, the actions of a few key players, luck, and a hundred other variables.”
“Predicting all this accurately requires supernatural foresight.”
The virtual currency market rose from November 2024 to January 2024 through Donald Trump's presidential election and inauguration, and continued to rise due to his crypto-promoting policies.
However, as traditional finance becomes more involved in the market, cryptocurrencies are feeling the negative impact of across-the-board U.S. tariffs and the uncertainty of further interest rate cuts.
“Given that uncertainty, my approach is simple: buy the market,” Hogan said. “Specifically, I will be purchasing a market capitalization weighted crypto index fund.”
He said cryptocurrencies “will be much more important in 10 years than they are today,” adding that the market could grow up to 20 times over that time.
Hogan pointed to comments from Securities and Exchange Commission Chairman Paul Atkins on Wednesday that the U.S. financial system could embrace tokenization within “a few years.”
The U.S. stock market is approximately a $68 trillion market. The company currently holds approximately $670 million in tokenized stock. https://t.co/IgyJ20oiar
— Matt Hougan (@Matt_Hougan) December 8, 2025
Related: Bank of America supports 1%-4% crypto allocation, opens door to Bitcoin ETF
“Stablecoins are going to be more important. Tokenization is going to be more important. Bitcoin is going to be more important. And 12 other major use cases will follow, including prediction markets, decentralized finance (DeFi), privacy technologies, and digital identity,” Hogan said.
“We don't want to risk choosing the wrong chain,” he added. “Imagine correctly calling a market up 100,000x, but still underperforming because you backed the wrong horse.”
“That's why I use a crypto index fund as the core of my portfolio. I know that no matter how crypto evolves, I will own exposure to potential winners,” Hogan said.
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