State Street analysts forecast that crypto ETFs in North America will surpass precious metals by the end of 2025, solidifying their position as the third-largest asset class.
Forecast by State Street
According to the Financial Times, cryptocurrency ETFs are set to overtake precious metals in the US by 2025, following only equities and bonds. This statement is based on a forecast by State Street, highlighting the significant growth in interest and demand for crypto assets.
Future of Crypto ETFs
State Street expects the US Securities and Exchange Commission to allow ETFs based on altcoins in 2025. Koudelka notes that there are 'a lot of other coins out there that ETFs can potentially solve for.' The bank also predicts the approval of 'in-kind' trading for crypto ETFs, enabling transactions in cryptocurrencies instead of cash.
Comparison with Precious Metals Market
As of late February, a total of 39 crypto ETFs in the US amassed around $100 billion. BlackRock and Fidelity are the largest players, with assets in their crypto ETFs valued at over $57 billion and $20 billion respectively. North American precious metals ETFs, including the $85 billion SPDR Gold Trust, hold a combined $165 billion, but analysts at State Street expect crypto ETFs to surpass this amount this year.
By 2025, crypto ETFs may secure their place as a leading asset class in North America, reflecting significant growth and shifts in investor preferences.
