What To Know:
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Bitwise’s Matt Hougan expects 100+ new crypto ETFs as regulatory clarity improves, despite current market volatility.
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SEC’s streamlined listing standards and rapid-registration routes are accelerating launches across altcoin and index products.
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Rising institutional demand is driving ETF momentum, though analysts warn of risks tied to staking mechanics and concentrated exposure.
Bitwise’s chief investment officer, Matt Hougan, has predicted a new wave of new exchange-traded products for cryptocurrencies even as markets are currently struggling with recent volatility. In a recent interview, he said lawmakers’ reopening of review processes and fresh regulatory clarity had set the stage for a substantial increase in ETF-style offerings. His comments came during an appearance on CNBC’s “ETF Edge,” where he forecasted more than 100 new launches across single-asset and index-based crypto products.
Bitwise Exec: ETF To Surge Irrespective of Market Trends
Markets had endured a rough patch when Hougan spoke. Bitcoin had fallen below $90,000 after hitting roughly $126,000 only weeks earlier. Many altcoins were under pressure. Despite that backdrop, Hougan framed the episode as a temporary setback and argued the structural story for regulated investment vehicles remained intact. He described index-based exchange-traded products as the most consequential development on the horizon, and said they would attract a new class of investors who wanted broad exposure without direct custody of tokens.
Bitwise had recently rolled out a Solana staking ETF, a passive product that held SOL and staked tokens on-chain to capture network rewards. The fund had lost about a quarter of its value since launch. Still, it recorded a sharp uptrend in trading after a rebound. Hougan highlighted that such products were aimed at retail and institutional buyers seeking a simple, long-term allocation to crypto, rather than bets on one token versus another.
Recently, the Securities and Exchange Commission had introduced generic listing standards that allowed exchanges to list certain crypto ETFs without seeking individual exemptions. That pathway relied heavily on surveillance agreements and trading volume data from established venues. The SEC had signalled willingness to expand the list as more assets met the agency’s criteria. Industry participants said the rules produced a fast lane for new funds and helped reduce the frictions that had stalled earlier launches.
Canary Capital and other issuers used an auto-effective registration route under Section 8(a) of the Securities Act to secure rapid approvals. Exchanges filed certifications and, in some cases, benefited from quieter regulatory calendars during government shutdown windows. Those mechanics allowed spot and altcoin-focused ETFs to debut in quick succession, and watchers noted sizeable opening-day volumes for several funds. Bitwise reported that its Solana ETF handled tens of millions of dollars in initial trading volume, and suggested strong initial interest despite short-term price weakness.
Market commentators linked the rise of crypto ETPs to growing institutional demand for regulated products. Tom Lee of Fundstrat echoed the sentiment that recent policy signals were encouraging experimentation and product innovation. He said the administration’s stance had eased some barriers for issuers and investors. The combination of product innovation and clearer listing mechanics was altering how traditional finance engaged with digital assets, he added.
Critics cautioned that early launches carried risks. Some funds had concentrated exposure and complex mechanics such as staking that introduced counterparty and custody considerations. Performance for recently listed products varied widely in the weeks after debut, and the overall market had shown heightened sensitivity to macro and on-chain events. Observers said investor education and robust custody frameworks would be critical if ETFs were to scale sustainably.
Still, Hougan’s projection of a broadening ETF market pointed to a shift in market structure. Where direct token custody once dominated, regulated wrappers could become the preferred vehicle for many mainstream investors. Index-based ETPs, in particular, were expected to broaden market access by offering diversified exposure and lower friction.
The short-term picture remained mixed. Price action had erased significant gains built earlier in the year, and volatility had spiked across major tokens. But a growing slate of regulated products had emerged even as trading conditions tightened.
Also Read: Wintermute to SEC: Allow On-Chain Settlement, Exempt DeFi Trading
