Bitwise CIO Anticipates Crypto ‘ETF Palooza’: Over 100 New Funds Expected To Launch In 2026
The current reopening of the federal government could sign the start of an unprecedented surge in cryptocurrency exchange-traded funds (ETFs) within the United States, as famous by Bitwise’s Chief Investment Officer, Matt Hougan.
This anticipated development aligns with the emergence of pro-crypto laws from the Trump administration and crypto-friendly regulators, led by the US Securities and Exchange Commission (SEC), the company liable for approving these funds.
Crypto ETFs In Flux
Bitwise’s Matt Hougan is optimistic concerning the potential for brand new funding merchandise within the sector. “We’re going to witness an ETF Palooza in Cryptoland,” he remarked throughout an appearance on CNBC’s “ETF Edge.”
He predicts that greater than 100 new ETFs and exchange-traded merchandise (ETPs) will launch within the coming yr, emphasizing a deal with single-asset crypto ETPs. Most thrilling for him, nonetheless, is the anticipated development of index-based crypto ETPs.
Despite the challenges seen over the previous month, with the general crypto market decline led by Bitcoin’s crash beneath $90,000 on Wednesday, Hougan believes that index ETPs may emerge as one of many largest tales within the crypto house subsequent yr.
“This business will probably be 10 occasions greater than it’s immediately,” asserted Hougan, whose agency lately launched the Solana Staking ETF on October 28, designed to trace Solana’s (SOL) value.
Although Bitwise’s Solana fund has seen a 27% decline since its launch, it skilled a 9% enhance on Tuesday, suggesting some resilience amid the broader market turmoil.
The broader Solana ETF sector has seen a steady 16-day inflow streak amounting to almost $26 million. Meanwhile, Bitcoin ETFs have seen virtually $2 billion in outflows since October, in accordance with SoSoValue data.
Tom Lee Believes Trump’s Support Will Spark New Opportunities
Bitwise’s passive fund stakes practically all of its SOL tokens on-chain, contributing to transaction validation and community safety whereas incomes ongoing rewards which might be reinvested again into the portfolio.
According to Hougan, most of these merchandise goal a brand new demographic of crypto traders—people seeking to purchase smaller parts of digital belongings for his or her portfolios.
“They don’t essentially have an opinion on Ethereum versus Solana or Bitcoin versus one other asset; they simply wish to purchase a broad swath of the crypto market and maintain it for the long run,” he defined.
Echoing this sentiment, Tom Lee from Fundstrat Global Advisors additionally foresees a positive shift available in the market. An extended-time proponent of Bitcoin, Lee cites elevated openness from the Trump administration as a catalyst.
“Experimentation and innovation are being inspired by this administration,” he famous throughout the identical interview with CNBC.
At the time of writing, Bitcoin is buying and selling at $88,926, down practically 30% from its all-time high. Solana has additionally retraced to the $131 mark, representing a 55% hole from present buying and selling ranges and report highs.
Featured picture from DALL-E, chart from TradingView.com
