CF Benchmarks says investment advisors will be looking to spot Bitcoin (BTC) listed in the US next year. $95,971.3 announced that it will become one of the largest investors in exchange traded funds (ETFs). Launched in January, the 11 spot BTC ETF offers investors exposure to the cryptocurrency without owning it directly. Since their inception, these ETFs have raised over $36 billion in investments.
Bitcoin and Ether ETFs
Currently, 45.3% of ETFs are controlled by hedge fund managers, with investment advisors holding second place with 28%. However, CF Benchmarks predicts that the share of investment advisors in the BTC and Ether (ETH) ETF markets will exceed 50% in 2025.
CF Benchmarks is a UK-based index provider and is behind many major crypto asset indices such as BRRNY. In its annual report, it noted that investment advisors’ shares will increase as the US’s $88 trillion asset management industry begins to adopt these tools.
“This transformation will be driven by increasing customer demand, the rise in popularity of crypto assets, and the maturation of products.” -CF Benchmarks.
Future Predictions
Ethereum $3,336.4is predicted to benefit from the growing popularity of asset tokenization. Competitor Solana could increase its market share by benefiting from potential regulatory clarity in the US. The report stated that asset tokenization will accelerate in 2025, with tokenization of real-world assets reaching over $30 billion.
In the stablecoin market, Ripple $2.2New initiatives like ‘s RLUSD and Paxos’ USDG could challenge Tether’s USDT dominance. However, the current USDT market share has increased from 50% to 70%.
While the Fed is expected to loosen monetary policy, the report stated that assets such as Bitcoin will support inflation expectations and provide protection against currency depreciation.
Investment advisors’ increased stake in Bitcoin and Ether ETFs will play an important role in integrating crypto assets into financial portfolios. This shift could allow investors to gain greater access to crypto assets and diversify their financial strategies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.