CF Benchmarks forecasts that investment advisors will become the main investors in Bitcoin ETFs in the U.S., surpassing hedge funds.
Bitcoin and Ether ETF Market
Since their launch in January, 11 spot Bitcoin ETFs have accumulated over $36 billion in investments. Hedge funds currently control 45.3% of the ETFs, while investment advisors hold a 28% share. CF Benchmarks predicts that by 2025, the share of advisors will exceed 50%.
Future Predictions
Ethereum is expected to benefit from the rising popularity of asset tokenization, while competing Solana may gain market share by leveraging potential regulatory clarity in the U.S. Asset tokenization is likely to accelerate by 2025. Tether's current market dominance increased from 50% to 70%, but new initiatives like Ripple's RLUSD and Paxos’ USDG could present challenges.
Role of Investment Advisors
CF Benchmarks emphasizes that the growing share of investment advisors in Bitcoin and Ether ETFs will facilitate the integration of crypto assets into financial portfolios, potentially allowing investors greater access to cryptocurrencies and diversification of financial strategies.
The predicted rise in the role of investment advisors in Bitcoin and Ether ETFs indicates growing interest in cryptocurrencies and their integration into traditional financial strategies.
