• Bitwise CIO Matt Hougan states that crypto has significant potential, but investing in the right domain can be difficult.
• Hougan notes that he uses crypto index funds to solve the hassle of picking the right winners.
• The comments follow the debut of the Bitwise 10 Crypto Index ETF.

The crypto market could see a 10-20x growth over the next decade, but correctly predicting which chains or projects will win can be a hassle, according to Bitwise CIO Matt Hougan.

"Outcomes will be shaped by regulation, execution, macro conditions, the actions of a few key individuals, luck, and a hundred other variables. Forecasting all of that correctly would require supernatural foresight," wrote Hougan in a Tuesday note.

SEC Chair Paul Atkins recently stated that US equities could move onchain within the next few years, a scenario that could spark a 100,000x growth in the digital asset market. However, one can largely miss out on those gains without investing in the right project, Hougan noted.

Crypto index funds could provide a better way

"Imagine correctly calling a market that goes up 100,000x — and still underperforming because you backed the wrong horse," he added. "Given that uncertainty, my approach is simple: I buy the market."

The Bitwise CIO highlighted that his biggest bet is on the entire growth of the crypto market rather than on one particular cryptocurrency. Hougan stated that he diversifies by leveraging market-cap-weighted crypto index funds as the main holdings in his portfolio.

The comments follow the debut of the Bitwise 10 Crypto Index ETF (BITW) on the NYSE Arca on Tuesday. BITW holds a basket of the ten largest cryptocurrencies by market capitalization, including Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL).