Hougan explained that while he expects the overall market to grow, no one can reliably choose the top performing tokens ahead of time. For that reason, he said owning a fund that follows the market could be a reasonable starting point, though it may not fit every investor. Several ETF issuers already offer products that track multiple cryptocurrencies, similar to how the S and P 500 tracks large US companies.
Some multi crypto ETFs launched earlier this year hold assets according to each token’s market cap, but they have drawn moderate inflows so far since Bitcoin still controls close to 60% of the total crypto market.
Uncertainty Drives Demand for Broader Market Coverage
Hougan said that even with years in the sector and access to skilled professionals, he cannot say “with confidence which chain will win, or precisely how things will turn out.” He described digital asset’s future as hard to predict, shaped by regulation, execution, macro pressures, decisions by major industry figures, luck, and many other factors that cannot be forecast with precision.
Crypto markets rallied from late 2024 through January during Donald Trump’s election and inauguration, helped by expectations of more friendly policies. Prices remain elevated, though sweeping US tariffs and questions about interest rate cuts have added fresh challenges as traditional finance becomes more active in the space.
A Simple Strategy for a Rapidly Changing Sector
Given the uncertain environment, Hougan said his strategy stays straightforward: he buys a market cap weighted crypto index fund. He believes the sector could grow up to twenty times its current size over the next decade as tokenization, stablecoins, Bitcoin, and new uses such as decentralized finance and digital identity gain broad traction.
He also pointed to SEC chair Paul Atkins’ recent comment that the US financial system could adopt tokenization within a couple of years.
Hougan added that he prefers broad exposure since backing the wrong network could leave major gains on the table. He said a crypto index fund gives him comfort that, regardless of how the market evolves, he will hold positions in the potential long term winners.
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