Institutional interest in crypto is expected to grow in 2026. According to Bitwise Chief Investment Officer Matt Hougan, exchange-traded funds (ETFs) will play a central role in this trend. His insights explain why ETFs are increasingly the preferred route for financial advisors and institutions alike.
Why ETFs Appeal to Advisors
Firstly, Hougan highlights that most advisors do not spend their days immersed in cryptocurrency. For many, digital assets constitute only a small portion of client portfolios. Consequently, advisors often think about crypto for minutes rather than hours. Therefore, investing directly in crypto can feel complex and time-consuming.
Moreover, ETFs simplify this process significantly. Instead of handling wallets, custody, or operational logistics, advisors can invest through familiar, regulated products. In other words, ETFs reduce friction and risk. “ETFs fit how advisors actually work,” Hougan emphasizes, making them a practical solution for the majority of professionals.
Consistent Institutional Preference
Importantly, this preference for ETFs is not new. Bitwise has surveyed thousands of institutions and advisors for eight consecutive years. During this period, approximately 70% consistently reported that ETFs are their preferred way to invest in crypto.
Furthermore, the survey shows that even as the crypto market evolves, the demand for easy-to-use, regulated investment products remains strong. This trend underlines a structural reality: advisors favor solutions that are simple, approved and low-maintenance. Therefore, ETFs continue to meet the core needs of institutional investors.
Future Outlook: Crypto ETFs in 2026
As regulatory frameworks mature and new ETF options emerge, Hougan predicts that demand for crypto ETFs will continue to increase next year. In addition, advisors and institutions are unlikely to switch to more complex direct custody solutions unless operational challenges are addressed.
Consequently, ETFs act as a bridge between traditional finance and digital assets. They allow large pools of capital to enter the crypto market safely and efficiently. For investors and analysts, this trend signals a stable pathway for institutional adoption, even amid market volatility.
Why Crypto ETF Demand Will Grow
In conclusion, crypto ETF demands are positioned to play a growing role in the coming year. By providing simplicity, regulatory clarity, and operational ease, ETFs align with how advisors actually work. Therefore, as 2026 approaches, the demand for these investment vehicles is likely to strengthen, further integrating digital assets into mainstream finance.
