Matt Hougan, Chief Investment Officer at Bitwise, points out that cryptocurrency index funds will become one of the most important investment tools by 2026, as the crypto market becomes more complex and use cases multiply. Hougan believes that the market is evolving so rapidly that predicting which currencies will outperform is difficult, so he considers investing in a fund that follows a basket of cryptocurrencies a suitable option for investors who want broad exposure without the risk of choosing a single currency.
Despite the launch of multiple cryptocurrency ETFs in the United States this year, their inflows remain modest due to Bitcoin's dominance, which represents about 60% of the market. Hougan asserts that the future of cryptocurrencies is unpredictable due to the impact of regulatory policies, economic conditions, and technological developments.
He also expects that the cryptocurrency market will grow significantly over the next ten years, with the expansion of areas such as decentralized finance, privacy, and digital identity, in addition to the possibility of the American financial system adopting asset tokenization in the coming two years
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