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Bitwise CIO Backs Market-Cap Crypto Index Funds, Predicts 2026 Breakout

He urges long-term investors to buy broad exposure to sidestep chain-picking risk.

Overview

  • Matt Hougan recommends market-cap-weighted crypto index funds as the core allocation, with only smaller, targeted bets around the edges.
  • He says no one can reliably forecast whether Ethereum, Solana, Bitcoin or another chain will lead, citing regulation, execution, macro conditions and other variables.
  • Hougan projects the overall crypto market could expand roughly 10–20 times over the next decade.
  • He points to tokenization as a major driver, noting SEC Chair Paul Atkins’ view that U.S. equity markets could move onchain within a few years and contrasting ~$68 trillion in equities with about $670 million in tokenized stocks today.
  • He expects indexing to gain significant traction in 2026 as the market grows more complex across areas such as stablecoins, DeFi, digital identity and tokenized assets.