Bitwise CIO Says Crypto Index Funds Are Becoming Essential as Markets Grow More Complex

Matt Hougan, the Chief Investment Officer of Bitwise, that by 2026, crypto index funds will be a large deal. This is because the cryptocurrency industry is becoming more complex and increasingly diverse in its uses. 

He says that the digital asset ecosystem now includes gaming tokens, Layer 2 networks, privacy chains, AI protocols, real-world assets, , and modular blockchains, which can be too much for average investors to handle.

Hougan says most people want systematic strategies to gain broad exposure without always chasing trends.

Hougan’s Plan for 2026 Widespread Use

Hougan , “Crypto index funds are going to be a large deal in 2026.” This shows how the market is growing quicker than most people can keep track of every day.

These funds follow baskets of the best cryptocurrencies or thematic sectors, which makes it less stressful to identify winners when the market is volatile. He says that platforms show ahead signs of users changing their behaviour towards these kinds of items, making them a mainstream choice for millions.

More Exposure Than Concentrated Bets

As new types of tokens, payments, and decentralised computing come up, it becomes riskier for casual investors to choose their own assets. Index funds are a excellent way to invest because they combine leaders from several sectors into a single fund, reducing emotional stress while still allowing for growth.

Hougan says that broad tactics are the best way to grow over the next ten years, and that focused bets are a poor idea.

Thematic Indexes Getting Ready to Launch

Hougan expects to introduce specialised indexes in 2026 that focus on blue chips, decentralised storage, or AI crypto. These will appeal to people who desire targeted yet varied investments.

This change is similar to how indexes make it easier to participate in complicated markets in traditional finance. Bitwise, which launched the first crypto index fund in 2017, offers more than 30 products encompassing , trusts, and other products across 20 assets.

Investors Move to Simple

The urge for index-style investing stems from the fact that crypto grows in layers, with new coins and utilities emerging regularly.

Investors care more about stability than hype, so they want funds that rebalance every month and have secure custody. As 2026 approaches, Hougan’s prognosis suggests that crypto is entering a mature phase, making it easier to use without extensive knowledge.