CF Benchmarks predicts that investment advisors will overtake hedge funds by reaching over 50% share in Bitcoin and Ethereum ETFs by 2025.
CF Benchmarks predicts that investment advisors will overtake hedge funds as the largest holders of U.S.-listed spot Bitcoin (BTC) ETFs by 2025. According to the firm’s report, 11 spot Bitcoin ETFs were launched on Jan. 11 and have since raised over $36 billion from investors.
Initially dominating demand, hedge fund managers currently hold 45.3% of ETFs, with investment advisors coming in second with a 28% share. However, CF Benchmarks said it expects investment advisors to increase their share to over 50% in bitcoin and ether (ETH) ETFs.
Investment advisors will take on a larger role in portfolios as the $88 trillion U.S. wealth management industry begins to adopt these tools, CF Benchmarks said.
The report emphasized that this transformation will occur with the increase in customer demands, a better understanding of cryptocurrencies and the maturation of products.
While the Ethereum blockchain is expected to benefit from the increasing popularity of asset tokenization, it was stated that its rival Solana could increase its market share as regulatory uncertainties in the U.S. are resolved. The report stated that tokenized real-world assets (RWA) are expected to exceed $30 billion by 2025.
In the stablecoin market, new players such as Ripple’s RLUSD and Paxos’ USDG will challenge Tether’s USDT, the report also stated. It was also reported that the Fed could increase inflation expectations with measures such as expanded asset purchases, and stable assets such as Bitcoin would gain importance in this process.
