Will Peck, head of digital assets at WisdomTree, predicts that exchange-traded funds (ETFs) that hold a diverse basket of cryptocurrencies will fill a big gap in the market over the next few years.
“It looks like that’s going to be one of the next waves of adoption,” Peck told Cointelegraph at the Bridge Conference in New York City on Wednesday. “I think it solves a need,” he added.
Peck explained that while many new investors understand the concept of Bitcoin (BTC), they often struggle to determine “the next 20 asset ranges.” He said a multi-asset cryptocurrency basket provides exposure to the sector while mitigating the “idiosyncratic risks” of investing in individual tokens.
Will Peck says index ETF investors support this technology
“We talked about cryptocurrencies as an asset class, but it’s actually a technology, and the underlying revenue drivers for each of these tokens, even though they’re correlated, are actually quite different just because that’s where the market is at in general,” he explained.
Will Peck spoke to Cointelegraph at the Bridge Conference in New York City on Wednesday. Source: Cointelegraph
This follows the launch of several crypto index ETFs this year. Most recently, on Thursday, asset management firm 21Shares launched two crypto index ETFs regulated under the Investment Company Act of 1940.
Just a few months ago, on September 25, asset manager Hasidex expanded its crypto index US ETF to include XRP (XRP), SOL (SOL), and Stellar (XLM) following general listing rule changes by the Securities and Exchange Commission (SEC).
Peck said the timing of widespread adoption of crypto index ETFs is “difficult to predict with any precision,” but suggested it may be inevitable given the simple utility of products offering such exposure.
Peck said he expects a surge in new crypto ETF launches as ETF issuers compete for early advantage, which could undermine the idea that ETFs automatically signal that crypto tokens have any authority or trustworthiness.
Bitcoin ETF’s success has ‘exceeded’ Will Peck’s expectations
“I think that’s going to be a change. Five years ago, you said: If something were to have an ETF, for example Bitcoin would get an ETF, that would probably be the first one, and it would have to have some sort of institutional stamp of approval or something like that,” he said.
“In that respect, I think the SEC should be a results-based regulator, which it’s not necessarily, and it’s really about customers making the right choices with their money,” Peck added.
Meanwhile, Peck said the Bitcoin Spot ETF’s “overall success” since its launch in January 2024 has exceeded expectations.
“It’s surprising to me that the Bitcoin ETF category, which includes cryptocurrencies in general, is one of the most competitive parts of the US ETF market,” he said.
Since its launch, the U.S.-based Spot Bitcoin ETF has seen net inflows into the product reach approximately $58.83 billion, according to Pharcyde.
