A growing number of U.S. investors may soon favor crypto funds that look more like the S&P 500 than a single-asset bet.
That’s the direction WisdomTree expects the crypto ETF market to move, according to Will Peck, who oversees the company’s digital-asset initiatives.
From “Which Coin Should I Buy?” to “Give Me the Whole Sector”
Peck says the education curve in crypto has shifted. First-time investors no longer need an explanation of what Bitcoin is — they already know. The challenge now, he argues, is knowing what to do after Bitcoin. With thousands of tokens in circulation, a product that bundles multiple assets into one ETF could spare investors from having to guess which project will outperform the rest.
Instead of picking winners, a crypto index ETF would let investors support the evolution of blockchain technology as a whole. Peck describes it as backing the industry, rather than the individual coin.
Index ETFs: Already Emerging, Not Just Theoretical
Several fund issuers have already begun moving in that direction.
Earlier this week, 21Shares rolled out two crypto index ETFs under the 1940 Act. A couple of months earlier, Hashdex broadened its own index ETF to include XRP, Solana and Stellar, enabled by a recent SEC rule update.
Peck believes the pace of experimentation will accelerate. Once issuers recognize that demand exists beyond Bitcoin-only ETFs, he expects a market race — more index funds, more competing methodologies and more marketing aimed at capturing investors early.
No Automatic “Stamp of Approval” Anymore
One ripple effect of this expansion, Peck says, will be the erosion of an old assumption: that if an asset appears in an ETF, it must have some kind of institutional approval. With multiple index providers competing, the brand of the issuer — not the government — will matter more to investors evaluating credibility.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
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