Bitwise CIO Sees 2026 As A Crypto ETF Explosion: Over 100 New Products On The Way
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The recent reopening of the US government could mark the start of a new era for cryptocurrency exchange‑traded funds, according to Matt Hougan, Chief Investment Officer at Bitwise. Against the backdrop of a more crypto‑friendly political climate and a shifting regulatory tone, Hougan expects an aggressive wave of new funds to hit the market as early as next year.
His outlook is closely tied to what he describes as a more supportive posture from the Trump administration and regulators who are increasingly open to digital assets. In particular, the US Securities and Exchange Commission (SEC) — the key gatekeeper for ETF approvals — is now seen by many industry participants as more willing to green‑light innovative crypto products than in previous years.
‘ETF Palooza’ In Crypto: 100+ Products In Sight
Speaking on CNBC’s “ETF Edge,” Hougan did not mince words about the scale of what he expects:
> “We’re going to witness an ETF Palooza in Cryptoland.”
He believes more than 100 new crypto ETFs and exchange‑traded products (ETPs) could be launched over the course of 2026. While single‑asset ETPs — focused on individual coins like Bitcoin, Ethereum, or Solana — will likely make up a large portion of these products, Hougan is especially enthusiastic about index‑based crypto ETPs.
In his view, diversified index funds that bundle multiple digital assets into a single product could become one of the defining growth stories in the industry next year. These products mirror the role stock market index funds have played in traditional finance: simplifying access, spreading risk, and making it easier for non‑specialists to participate.
Despite the recent volatility in digital assets — highlighted by Bitcoin’s sharp drop below 90,000 dollars on Wednesday — Hougan remains convinced:
> “This industry will be 10 times bigger than it is today.”
That comment underscores his belief that the current pullback is a cyclical phase within a much longer structural uptrend for crypto as an asset class.
Bitwise’s Solana Staking ETF: Early Test Case
Bitwise has already begun positioning itself for this anticipated ETF boom. On October 28, the firm launched its Solana Staking ETF, a fund designed to track the price performance of Solana (SOL) while also participating in the network’s staking rewards.
Since launch, the ETF has experienced a 27% drawdown, reflecting the broader correction in Solana itself. However, it posted a 9% rebound on Tuesday, hinting at underlying buying interest even as sentiment across crypto remains fragile.
More broadly, Solana ETPs have quietly built momentum. The Solana ETF segment has recorded a 16‑day streak of net inflows, bringing in close to 26 million dollars over that period. This steady stream of capital stands in sharp contrast to Bitcoin ETFs, which have seen nearly 2 billion dollars in cumulative outflows since October, according to industry data.
Bitwise’s Solana product is structured as a passive fund that stakes nearly all of its SOL holdings directly on‑chain. By participating in staking, the fund helps validate transactions and support the security of the Solana network. In exchange, it earns staking rewards that are automatically reinvested into the portfolio, potentially enhancing long‑term returns for investors if the underlying asset recovers.
A New Kind Of Crypto Investor
Hougan argues that this new wave of products is not aimed solely at hardcore crypto traders. Instead, they primarily target a growing segment of mainstream investors who see digital assets as one component of a diversified portfolio — but do not want to spend time researching every individual token.
> “They don’t necessarily have an opinion on Ethereum versus Solana or Bitcoin versus another asset; they just want to buy a broad swath of the crypto market and hold it for the long term,” he explained.
Index‑style ETPs are designed exactly for these investors: they provide exposure to a basket of cryptocurrencies in a single, regulated, easily tradable wrapper. That lowers both the knowledge barrier and the operational headache of managing private keys, exchanges, or wallets.
If Hougan’s prediction of 100+ new funds materializes, investors could soon choose from thematic crypto ETFs (for example, DeFi‑only or smart‑contract platforms), yield‑enhanced staking funds, actively managed strategies, and multi‑asset indexes that rebalance automatically.
Tom Lee: Political Tailwinds For Crypto
Matt Hougan is not alone in seeing a turning point for crypto investment products. Tom Lee, head of research at Fundstrat Global Advisors and a long‑time Bitcoin advocate, also expects market conditions to become more favorable.
He points to increasing openness from the Trump administration as a critical catalyst, arguing that less hostile rhetoric and more regulatory clarity can unlock significant institutional demand. In his words:
> “Experimentation and innovation are being encouraged by this administration.”
In practical terms, that encouragement could translate into faster approvals, clearer rules for issuers, and more confidence among large financial firms that have so far remained cautious about crypto exposure. Political alignment between the White House and key agencies may also reduce the stop‑start pattern of enforcement actions that has historically spooked investors.
Current Market Snapshot: Pain Before Expansion
The optimism about an ETF “palooza” is emerging in a market that is still digesting steep price declines. At the time of writing:
– Bitcoin is trading around 88,926 dollars, nearly 30% below its all‑time high.
– Solana has fallen back to approximately 131 dollars, leaving it 55% off its record levels.
Such deep drawdowns are typical of crypto market cycles, but they also tend to coincide with product innovation. Historically, some of the most important infrastructure — including exchanges, custody solutions, and derivatives markets — has been built during or immediately after major bear phases.
Hougan and Lee are effectively arguing that ETF development could follow a similar pattern: while prices remain under pressure, the foundation for the next phase of adoption is being laid in the form of new regulated investment vehicles.
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What A 2026 Crypto ETF Boom Could Mean For Investors
If more than 100 new crypto ETFs and ETPs really do launch in 2026, the landscape for both retail and institutional investors will change noticeably. Several key implications stand out.
1. Easier, More Regulated Access To Crypto
For many investors, the biggest barrier to entering crypto has never been interest — it has been infrastructure and trust. ETFs trade on familiar stock exchanges, settle through traditional brokerage accounts, and fall under established securities laws. This removes the need to:
– Open accounts on unregulated crypto exchanges
– Manage private keys or hardware wallets
– Worry about self‑custody security practices
That alone could draw in large pools of capital from financial advisors, retirement accounts, and conservative institutions that would never touch a standalone crypto exchange.
2. From Speculation To Portfolio Allocation
More product variety tends to shift behavior from short‑term speculation toward structured allocation. When investors can choose, for example, a broad‑market crypto index ETF or a staking‑enabled income product, they are more likely to view digital assets as a strategic holding rather than a quick trade.
Over time, this can reduce the dominance of speculative mania and help integrate crypto into modern portfolio construction frameworks — similar to how emerging markets equities or high‑yield bonds were gradually normalized in traditional finance.
3. A New Battlefront For Asset Managers
An “ETF Palooza” will also mean fierce competition among issuers. Asset managers will likely differentiate along a few key dimensions:
– Fees: As more funds enter the market, expense ratios are likely to compress, benefiting end investors.
– Structure: Some products will be physically backed, others synthetic; some will incorporate staking or yield strategies, others will be pure price trackers.
– Index design: The methodology behind index‑based ETPs — how assets are weighted, rebalanced, and screened — will become an important selling point.
Investors will need to look beyond the marketing and understand what each ETF actually holds, how it earns any additional yield, and what risks come with the structure.
4. Regulatory Scrutiny Will Intensify
A surge of new crypto ETFs will almost inevitably attract closer attention from regulators. While today’s environment appears more positive than in past cycles, the SEC and other agencies will remain focused on:
– Market manipulation and wash trading in underlying spot markets
– Liquidity and price discovery for less‑traded tokens
– Custody risks and operational resilience of service providers
– Investor disclosure and marketing practices
Issuers that can demonstrate robust compliance, secure custody, and transparent index methodologies will enjoy a competitive advantage as scrutiny rises.
5. Shift In Power Among Crypto Assets
The arrival of many new ETPs can amplify capital flows toward whichever assets gain the most representation in major indexes and themed funds. Bitcoin and Ethereum have historically dominated institutional products, but the recent attention on Solana ETFs shows that the hierarchy is not fixed.
If index‑based products give meaningful weight to newer networks with strong activity and developer ecosystems, those assets could see disproportionate inflows. Conversely, tokens that fail to secure ETF or ETP representation may increasingly be sidelined by mainstream investors.
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Risks To Consider Amid The Optimism
Hougan’s forecast is bullish, but a wave of new funds does not guarantee straightforward gains for investors. Several risks deserve careful attention:
– Market risk: Crypto remains one of the most volatile asset classes. An ETF structure does not change the underlying price behavior of the tokens it holds.
– Concentration risk: Even index funds can be heavily skewed toward a few large‑cap coins. Investors who think they are highly diversified may still be heavily exposed to Bitcoin or another dominant asset.
– Regulatory reversals: Political winds can shift. What looks like a pro‑crypto stance today could give way to stricter oversight if scandals or major market failures occur.
– Staking and yield complexity: Products that stake tokens on‑chain, like the Solana Staking ETF, introduce smart‑contract, slashing, and protocol risk in addition to price movements.
Careful due diligence, including reading fund documentation and understanding how returns are generated, will remain essential even as access becomes easier.
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How Individual Investors Can Prepare
For those considering taking advantage of the potential 2026 ETF boom, a few practical steps can help:
1. Clarify your role for crypto: Decide whether digital assets are a small speculative bet, an inflation hedge, a growth component, or a technology bet within your portfolio.
2. Favor simplicity first: Broad‑market or blue‑chip crypto index ETFs can be a more prudent starting point than narrow, highly specialized products.
3. Compare fees and tracking: Check how closely a fund has historically tracked its benchmark and what you are paying in expenses relative to peers.
4. Diversify across structures: Combining spot‑based, index‑based, and possibly staking‑enabled products (if you understand the risks) can balance performance drivers.
5. Stay informed on regulation: Policy changes can have direct impacts on specific products, including restrictions, new reporting requirements, or, in extreme cases, forced closures.
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A Turning Point For Crypto’s Integration With Finance
Matt Hougan’s prediction of an “ETF Palooza” is ultimately about more than just product counts. It signals a deeper shift in how crypto is accessed, regulated, and integrated into the global financial system. If 2026 does bring over 100 new crypto ETFs and ETPs, the asset class will move further away from its roots as a niche frontier market and closer to becoming a standard building block in diversified investment portfolios.
Whether markets are rising or falling by then, the infrastructure being built now — from Solana staking ETFs to broad crypto index funds — is laying the groundwork for that transformation.