Matt Hougan Predicts Massive Crypto Expansion Ahead
- Hougan expects crypto to grow fast as new asset paths form and tokenized systems widen.
- Investors seek clear ways to enter as index funds gain strong interest by 2026.
- New themes arise as digital sectors shift and shape a broad mix of future assets.
Bitwise Chief Investment Officer Matt Hougan told clients that the crypto market could grow 10–20x in the next decade as the shift to on-chain markets accelerates and new use cases expand across the digital economy. He pointed to comments from SEC Chair Paul Atkins, who said on Fox Business that all U.S. equity markets may move on-chain “in a couple of years.” Hougan said this timeline signals a dramatic shift in market structure as tokenized assets scale quickly.
Tokenization Momentum Pushes the Market Into a New Phase
Hougan noted that U.S. equities hold almost $68 trillion, while tokenized stocks today sit at about $670 million. This gap shows how early the migration remains. It also shows how large the shift could be once traditional markets adopt blockchain rails.
He said stablecoins, tokenized assets, and Bitcoin will grow in importance. He also expects new sectors to accelerate adoption as prediction markets, decentralized finance, privacy tools, and new digital identity models gain traction. These use cases are expanding rapidly and attracting both developers and investors.
He added that 2026 may reshape how people choose to gain exposure to crypto. Many investors want structured ways to enter the market without tracking complex trends. The rapid expansion of sectors such as AI tokens, RWA platforms, DePIN systems, and modular chains increases complexity for new entrants.
As he explained, “So I use a crypto index fund as the core of my portfolio and only make individual bets around the edges. I sleep well knowing that, however crypto evolves, I’ll own exposure to the potential winners.” This view reflects the rising demand for diversified strategies.
Index Funds Gain Traction as Investors Seek Clarity
Many investors do not want to evaluate every trend. They also want to avoid the pressure of choosing individual winners. This creates strong demand for broad crypto index products that reduce risk and offer cleaner long-term exposure.
Hougan expects index funds to gain mainstream adoption by 2026 as people seek stability and simplified entry points. The rise of new asset classes also drives this shift, since direct asset picking grows more complicated each year.
New thematic categories may appear soon. They could include targeted baskets for AI tokens, modular networks, DeFi leaders, or decentralized storage. Each category could offer investors exposure to specific growth areas without requiring deep technical knowledge.
This trend raises a key question: How will investors navigate a digital asset market that grows faster than they can track?
Related: Ethereum Treasury Buying Collapses as Liquidity Stress Rises
Uncertainty Drives Broad Exposure Strategies
Hougan said he cannot predict which blockchain networks will dominate. He noted that after eight years in the industry, speaking with researchers, founders, investors, and ecosystem leaders, the long-term winners remain “unknowable.”
He said outcomes depend on regulation, execution, macro conditions, influential decision-makers, and luck. He argued that anyone who claims to know the winning chain is “fooling themselves.”
This uncertainty shapes his own strategy. He invests in the overall market through a market-cap-weighted index fund rather than concentrating on individual networks. This approach reduces risk during rapid market evolution.
He still makes smaller individual bets, but index exposure forms the core allocation. As growth accelerates, he said, index funds offer a balanced path for investors seeking exposure without the need for daily monitoring.
He added that tokenization, stablecoin adoption, and the evolution of digital sectors will expand quickly. This expansion demands flexible tools that enable investors to participate in market winners without guessing which chain or sector will dominate.
