Crypto Market Could Grow 10 to 20 Times in 10 Years
The crypto market might grow 10 to 20 times in the next decade. But predicting which projects will succeed is very hard. Bitwise CIO Matt Hougan said many factors affect the market. These include regulation, execution, economic conditions, key people, and luck. Hougan wrote that forecasting all of these would need “supernatural foresight.”
Paul Atkins, SEC Chair, recently said US stocks might move onchain in the next few years. This could cause the digital asset market to grow 100,000 times. But Hougan warned that investors could miss those gains by backing the wrong projects.
Index Funds Offer a Safer Crypto Investment
Hougan said it is possible to back the wrong crypto even if the market grows a lot. His strategy is simple: he invests in the whole market. Hougan’s big bet is on overall crypto market growth, not a single coin.
He uses crypto index funds weighted by market cap to diversify his portfolio. These funds include many cryptocurrencies and reduce the risk of picking bad projects.
Bitwise 10 Crypto Index ETF Launches on NYSE Arca
Hougan’s comments came after Bitwise launched its 10 Crypto Index ETF (BITW) on NYSE Arca on Tuesday. BITW holds the ten largest cryptocurrencies by market value. This includes Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL).
The ETF provides a way to invest in a broad range of top cryptocurrencies through one fund.
