A government reopening could trigger another historic crash for the recently battered cryptocurrency.
Bitwise’s Matt Hogan expects the law to support new investment products in this space.
“It’s going to be an ETFpalooza for Cryptoland. I think there will be over 100 launches,” the company’s chief investment officer told CNBC’s “ETF Edge” on Monday. “We’re going to see a lot of single-asset crypto ETPs.” [exchange-traded products.] But what I’m most excited about is the growth of index-based crypto ETPs. ”
Hogan’s prediction comes during a tough week for digital assets. Bitcoin fell below the $90,000 milestone for the first time since April. It was trading as high as about $126,000 at the beginning of last month.
Despite the tough situation, he sees index ETPs becoming one of the biggest crypto stories of next year and ultimately one of the biggest categories for investors.
“This industry will be 10 times bigger than it is today,” Hogan added. On October 28, the company launched the Solana Staking ETF, which tracks the price of the Solana cryptocurrency. It’s down 27% since launch. But it rose 9% on Tuesday.
According to the company’s website, the passive fund only owns Solana and stakes almost all of SOL on-chain. The company’s website says it promises ongoing rewards similar to interest in exchange for tokens that help verify transactions and secure the network. Those rewards then go back into your portfolio.
Hogan said these products are targeted at the so-called next generation of crypto buyers: investors looking to buy small units for their portfolios.
“They don’t necessarily have an opinion on Ethereum versus Solana or Bitcoin versus other assets,” he said. “They just want to buy a large swath of the crypto market and hold it for the long term.”
Tom Lee of Fundstrat Global Advisors also predicts profitable changes ahead. Lee, a longtime Bitcoin bull, cited the Trump administration’s openness.
“Experimentation and innovation are being encouraged by the current administration,” the firm’s head of research and CNBC contributor told ETF Edge in the same interview.
