Bitwise CIO: As market complexity increases, cryptocurrency index funds may become highly popular

PANews, December 9—According to Cointelegraph, Bitwise Chief Investment Officer Matt Hougan stated in a report on Monday that as investors look for easier ways to access a broader range of digital assets, funds tracking a basket of cryptocurrencies are highly likely to become very popular next year. He predicts that by 2026, cryptocurrency index funds will become a major trend in the investment market. This is because the current cryptocurrency market is becoming increasingly complex, and its use cases are multiplying rapidly. Although the overall trend suggests the cryptocurrency market has growth potential, it is extremely difficult to accurately predict which specific tokens will stand out and perform well. Therefore, holding funds that track the overall market trend is “an excellent starting point for investing,” though he also admits that this approach “is not suitable for every investor.”

Hougan said that even though he has extensive experience in the cryptocurrency field and access to a professional network of experts, he still cannot “confidently judge which chain will ultimately win, or which direction things will go.” He further stated: “Given this uncertainty, my investment strategy is simple: I choose to buy the entire market. Specifically, I buy market-cap-weighted cryptocurrency index funds.” He added that the importance of cryptocurrency “will far exceed what it is today in ten years,” and that the market size could potentially grow up to 20 times.