Crypto Index ETFs Set for Growth, Says WisdomTree Exec
Key Takeaways:
• Crypto Index ETFs are emerging as one of the strongest drivers of upcoming mainstream adoption, according to WisdomTree’s head of digital assets, Will Peck.
• Multi-asset ETFs help new investors avoid idiosyncratic risk when evaluating tokens beyond Bitcoin.
• 21Shares and Hashdex have launched or expanded crypto index ETFs amid rising market competition.
• Investor perception of ETFs as a “credibility signal” for tokens is expected to fade as more products enter the market.
• Spot Bitcoin ETFs have attracted over $58.8 billion in inflows since early 2024, setting a strong precedent for broader ETF growth.
Crypto Index ETFs Poised for Mass Adoption
WisdomTree’s head of digital assets, Will Peck, believes the next major evolution in crypto investing will come from diversified index-based exchange-traded funds. Speaking at The Bridge conference in New York City, Peck emphasized that multi-asset crypto ETFs solve a critical problem for newcomers who understand Bitcoin but struggle to evaluate the next tiers of digital assets.
Peck explained that investors increasingly recognize the differences in how individual tokens generate returns. However, most still hesitate to pick winners in a volatile and fast-changing market. Crypto index ETFs, he said, allow participants to gain broad exposure to the ecosystem while reducing idiosyncratic risk tied to any single token.
This positioning reflects a shift in how the market views crypto. Peck argued that cryptocurrencies should be seen less as uniform speculative assets and more as distinct technological networks with unique fundamentals. A diversified ETF, in his view, is the simplest way for mainstream investors to participate meaningfully without deep technical analysis or active portfolio management.
The Rise of Multi-Asset Crypto ETFs
The momentum around crypto index ETFs has accelerated in 2025. In the past year, several major asset managers have launched products designed to mirror broad digital asset indices under more traditional regulatory frameworks. Most recently, 21Shares introduced two crypto index ETFs regulated under the Investment Company Act of 1940, marking another step toward integrating crypto products into long-standing investment structures.
Hashdex also expanded its flagship Crypto Index US ETF, adding XRP, Solana, and Stellar after benefiting from updated listing rules from the Securities and Exchange Commission. These developments signal that the competitive landscape for crypto ETFs is about to intensify as issuers race to build early market share.
Peck noted that this rapid expansion may ultimately reshape investor perceptions. Historically, a cryptocurrency gaining an ETF was seen as receiving a form of institutional validation. As more tokens become included in diversified funds, Peck expects that perception to fade. ETF availability, he said, should not be viewed as a measure of regulatory endorsement but rather as one of many investment tools that investors must evaluate thoughtfully.
Despite this shift, Peck believes broader adoption of crypto index funds is inevitable due to their straightforward utility. While he acknowledged that the timeline is difficult to predict, the industry is converging on increasingly standardized and transparent structures that make diversified crypto exposure more accessible.
Bitcoin ETFs Set the Benchmark
One reason confidence is rising around the viability of index-based products is the overwhelming success of spot Bitcoin ETFs. According to Peck, the category has become “one of the most competitive parts of the US ETF market,” exceeding early expectations.
Since their introduction in January 2024, US-listed spot Bitcoin ETFs have attracted over $58.8 billion in net inflows, according to Farside data. The sustained investor demand demonstrates that regulated fund structures can bring large amounts of traditional capital into digital assets without friction.
For Peck, this serves as a blueprint for what multi-asset crypto ETFs could become. As investors grow comfortable with regulated crypto exposure and ETF issuers refine their product strategies, index-based vehicles may unlock a broader and more sustainable wave of adoption.
Crypto index ETFs, he concluded, will eventually play the same role in digital assets that equity index funds played in stocks: simplifying complexity, expanding participation, and anchoring the asset class within mainstream portfolios.
