Investment advisers will probably overtake hedge funds as the biggest holders of U.S.-listed spot bitcoin (BTC) exchange-traded funds (ETFs) next year, CF Benchmarks said Monday.
A total of 11 spot BTC ETFs debuted in the U.S. on Jan. 11, providing a way for investors to gain exposure to the cryptocurrency without personally having to hold and store it. Since their inception, they have accumulated over $36 billion in investor funds.
Demand has been dominated by hedge-fund managers, who own 45.3% of the ETFs. Investment advisers, the gatekeepers to retail and high-net-worth capital, are a distant second at 28%.
That’s set to change in 2025, according to CF Benchmarks, which predicts investment advisers’ share will rise above 50% in both the BTC and ether (ETH) ETF markets. CF Benchmarks is a U.K.-regulated index provider behind several key digital asset benchmarks, including the BRRNY, referred by many ETFs.
“We expect Investment advisor allocations to rise beyond 50% for both assets, as the $88 trillion U.S. wealth management industry begins to embrace these vehicles, eclipsing 2024’s combined record-breaking $40 billion in net flows,” CF Benchmarks’ said in an annual report shared with CoinDesk.
“This transformation, driven by growing client demand, deeper understanding of digital assets, and product maturation, will likely reshape the current ownership mix as these products become staples in model portfolios,” the index provider said.
Investment advisers are already in pole position in the ether ETF market and are likely to extend their lead next year.
Ether’s parent blockchain, Ethereum, is expected to benefit from the growing popularity of asset tokenization while rival Solana could continue to gain market share on potential regulatory clarity in the U.S.
“We expect the trend towards asset tokenization to accelerate in 2025, with
tokenized RWAs topping $30B,” the report said, referring to real-world assets.
In stablecoins, new entrants like Ripple’s RLUSD and Paxos’ USDG are expected to challenge the dominance of tether’s USDT, whose market share has incr
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Author: Omkar Godbole
