Investment Advisers to Surpass Hedge Funds as Top Holders of Bitcoin (BTC) ETFs Next Year
According to CF Benchmarks, investment advisers are predicted to become the largest holders of U.S.-listed spot Bitcoin (BTC) and Ether (ETH) ETFs by 2025, surpassing hedge funds. Currently, hedge funds own 45.3% of these ETFs, while investment advisers hold 28%. The total investment in these ETFs has exceeded $36 billion since their launch on January 11, 2024. The forecast suggests that investment advisers will increase their share beyond 50% due to rising demand from clients, a better understanding of digital assets, and more developed products. The U.S. wealth management industry is expected to embrace these financial instruments, which are becoming essential in investment portfolios. Additionally, the report highlights anticipated growth in asset tokenization, possibly exceeding $30 billion, and mentions the expected growth in Ethereum with regulatory clarity. The Federal Reserve's potential shift to a more favorable monetary policy is also expected to support hard assets like Bitcoin amid inflation concerns.
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