While the cryptocurrency market is grappling with sharp declines, Bitwise CIO Matt Hougan has hinted at a new trend that could dominate the coming year.
Speaking to CNBC, Hougan said that with the reopening of the US government and the related regulations moving forward, the market will experience an “ETF Palooza.” According to Hougan, more than 100 new crypto ETFs/ETPs could be launched.
Hougan stated that index-based crypto ETPs, in particular, will be the fastest-growing segment in 2025, arguing that the new investor profile now prefers to “buy a basket of crypto assets and hold them long-term,” rather than turning to a single blockchain.
Hougan's predictions come as digital assets are facing a difficult week. Bitcoin has fallen below $90,000 for the first time since April and tested $126,000 early last month. However, despite this short-term pressure, the Bitwise executive believes crypto index products will be one of the biggest trends in the coming year.
“This sector will be 10 times larger than it is today,” Hougan said, citing the Solana Staking ETF, which they launched on October 28. Having lost 27 percent of its value since its launch, the product experienced a 9 percent recovery on Tuesday.
This passive fund holds only Solana and contributes to network security by staking the majority of its tokens on-chain. Staking rewards are returned directly to the portfolio.
Investor Preferences Shift Towards Diversified Crypto Holdings
Investors no longer want to make distinctions like Ethereum vs. Solana or Bitcoin vs. others. They want to buy a broad basket of cryptocurrencies and hold them long term.
Hougan stated that these new ETPs are aimed at “crypto’s next generation of buyers”:
Optimistic Outlook from Industry Analysts
Tom Lee, research director at Fundstrat Global Advisors and a key figure in the crypto markets, painted a similarly optimistic picture in an interview on CNBC. A longtime Bitcoin bull, Lee stated that the Trump administration's approach would accelerate the transformation of the sector.
“This administration is open to experimentation and innovation,” Lee said, arguing that the new window on the regulatory side would increase the interest of both institutional and individual investors in crypto products.
*This is not investment advice.