Opinion: Cryptocurrency Index ETFs Will Lead the Next Wave of Adoption

Jinse Finance reported that Will Peck, Head of Digital Assets at WisdomTree, expects that ETFs holding diversified cryptocurrency portfolios will fill an important gap in the market over the next few years and will become one of the next waves of adoption. Multi-asset cryptocurrency baskets can provide users with exposure to the entire industry while mitigating the "idiosyncratic risk" of investing in a single token. Will Peck stated, "We call cryptocurrency an asset class, but it is actually a technology. The underlying return drivers for each token are actually quite different, even though they are generally correlated, simply because the market is at this stage." Several crypto index ETFs have been launched this year. On Thursday, asset management firm 21Shares announced the launch of two crypto index ETFs: the 21Shares FTSE Crypto 10 Index ETF (ticker: TTOP) and the 21Shares FTSE Crypto 10 ex-BTC Index ETF (ticker: TXBC). Both provide broad digital asset portfolio exposure by tracking the FTSE Russell crypto indexes, holding the top ten crypto assets by market capitalization (with TXBC excluding bitcoin), rather than investing in a single token.