CF Benchmarks has announced that investment advisors are set to become one of the largest investors in spot Bitcoin (BTC) $93,806 exchange-traded funds (ETFs) listed in the U.S. The 11 spot BTC ETFs launched in January provide investors with exposure to the cryptocurrency without requiring direct ownership. Since their inception, these ETFs have accumulated over $36 billion in investments.
Bitcoin and Ether ETFs
Currently, hedge fund managers control 45.3% of the ETFs, while investment advisors hold the second position with a 28% share. However, CF Benchmarks forecasts that by 2025, the share of investment advisors in the BTC and Ether (ETH) ETF markets will exceed 50%.
CF Benchmarks is a UK-based index provider behind several significant cryptocurrency asset indices, including BRRNY. In its annual report, the firm indicated that the adoption of these tools by the U.S. asset management industry, valued at $88 trillion, will increase the share of investment advisors.
“This shift will be driven by rising customer demand, increasing popularity of crypto assets, and product maturation.” -CF Benchmarks.
Future Predictions
Ethereum $3,396 is expected to benefit from the growing popularity of asset tokenization. The competing Solana $189 may increase its market share by leveraging potential regulatory clarity in the U.S. The report suggests that asset tokenization will accelerate by 2025, with tokenized real-world assets surpassing $30 billion.
In the stablecoin market, new initiatives such as Ripple $2‘s RLUSD and Paxos’ USDG could challenge Tether‘s dominance. However, Tether’s current market share has risen from 50% to 70%.
With the Federal Reserve expected to ease its monetary policy, the report indicated that assets like Bitcoin would support inflation expectations and provide protection against currency depreciation. The increasing share of investment advisors in Bitcoin and Ether ETFs will play a significant role in integrating crypto assets into financial portfolios, potentially allowing investors greater access to cryptocurrencies and diversification of financial strategies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.