WisdomTree's head of digital assets, Will Peck, predicts that crypto index ETFs, which hold a variety of cryptocurrencies, are poised to become a significant driver of adoption in the digital asset space in the coming years. Speaking at The Bridge conference in New York City on Wednesday, Peck highlighted the crucial role these ETFs could play in bridging the gap for investors who understand Bitcoin but struggle to navigate the broader cryptocurrency market.

Peck noted that many new investors are familiar with Bitcoin (BTC), but have difficulty assessing the value and potential of other crypto assets. A multi-asset crypto basket, offered through an ETF, allows them to invest in the crypto sector while reducing the specific risks associated with investing in individual tokens. He emphasized that investors in index ETFs would essentially be investing in the underlying technology of crypto.

The emergence of crypto index ETFs comes as several such products have already launched this year. Asset manager 21Shares launched two crypto index ETFs regulated under the Investment Company Act of 1940. Furthermore, Hashdex expanded its Crypto Index US ETF to include XRP (XRP), SOL (SOL), and Stellar (XLM) after the SEC's generic listing rule change.

While Peck acknowledged the difficulty in pinpointing the exact timing for broader adoption, he suggested it's likely inevitable, given the clear advantages of a product that provides diversified exposure. He also anticipates a surge in new crypto ETF launches as issuers compete to establish an early advantage. However, he cautioned that this proliferation of ETFs might diminish the perception that an ETF listing automatically lends authority or credibility to a cryptocurrency token.

Notably, WisdomTree itself has been active in the crypto ETP space. In May 2024, the firm launched two new ETPs on the London Stock Exchange specializing in Bitcoin and Ethereum, offering investors a simple and cost-efficient way to gain exposure to these cryptocurrencies. These ETPs are physically backed and have a management expense ratio of 0.35%. The launch followed approval from the Financial Conduct Authority (FCA), which WisdomTree's head of Europe, Alexis Marinof, hailed as a "significant step forward for the industry".

Furthermore, in October 2025, the FCA granted WisdomTree approval to make its UK-listed crypto ETPs available to retail investors, marking a "landmark moment for UK investors," according to Marinof. This regulatory change allows retail investors to gain direct exposure to Bitcoin and Ethereum through a secure and transparent exchange-traded structure.

It's worth noting that WisdomTree's initial foray into Bitcoin ETFs saw relatively modest inflows compared to competitors like BlackRock and Fidelity. However, executives remain confident in their ability to grow assets under management as these products become more widely available on advisor platforms. The firm also offers a consumer app, WisdomTree Prime, which provides users access to a range of digital funds and other digital assets, with added utility in the form of payments and peer-to-peer functionality.