Bitwise Expects Rapid Growth in the Cryptocurrency ETF Market
Date: 2025-11-19 Author: Oliver Abernathy Categories: BUSINESS
Bitwise Chief Investment Officer Matthew Hougan shared his expectations for a new phase in the development of the cryptocurrency exchange-traded products (ETFs). He stated that the market could see an unprecedented surge in the number of new ETFs and other ETPs focused on digital assets in the coming months. He attributes this activity to regulatory changes and increased interest from institutional investors.
Hougan predicts that the number of newly launched cryptocurrency funds will exceed 100. A significant portion of these products, he said, will be focused on individual assets: these could be funds offering exposure to a single token or cryptocurrency. However, despite the expected growth in the number of such solutions, the expert believes that index products will be the key driver.
Hougan believes that index ETFs, representing a range of different cryptocurrencies, will become the most popular among a wide audience of investors. Such funds provide diversified market exposure without the need to manually select specific assets. He emphasizes that this simplicity will be one of the main factors driving the popularity of such instruments next year.
Hougan explains that interest in index products is primarily being shown by new crypto market entrants, as well as those who view digital assets as a small but important part of a long-term portfolio. These investors typically don't have a strong preference between assets like Ethereum, Solana, or Bitcoin. They value the ability to profit from overall market movements without in-depth analysis of each blockchain or token.
The expert also notes that the current market situation is creating favorable conditions for the emergence of products with broad exposure. He is convinced that index ETFs could become a focus for both retail and institutional investors as early as next year.
For context, he notes that just the day before his announcement, BlackRock's spot Bitcoin ETF experienced record capital outflows. This event, according to analysts, demonstrates the market's growing sensitivity to shifts in investment sentiment and confirms the need for more flexible and diversified solutions.
Therefore, Bitwise's forecast reflects the company's confidence that cryptocurrency ETFs will continue to develop rapidly, with index products playing a key role in this evolution.
