Investment Advisers to Supplant Hedge Funds as Top BTC ETF Holders in 2025: CF Benchmarks
Investment advisers, the gatekeepers to retail and high-net-worth capital, are seen overtaking hedge fund managers in owning BTC and ETH ETFs next year.
1. Summary:
Investment advisers are predicted to surpass hedge funds in owning BTC and ETH ETFs in 2025, according to CF Benchmarks. They are expected to hold over 50% of assets as the U.S. wealth management industry embraces these vehicles, reshaping ownership in digital assets.
2. Key insights:
– Investment advisers are expected to overtake hedge funds as the largest holders of U.S.-listed spot bitcoin exchange-traded funds (ETFs) in 2025, with their share set to rise above 50%.
– The growth in investment adviser allocations is driven by increasing client demand, better understanding of digital assets, and product maturation in the ETF markets for BTC and ETH.
– The trend towards asset tokenization is expected to accelerate in 2025, with potential challenges to the dominance of stablecoins like USDT from new entrants like RLUSD and USDG.
– The scalability of blockchains will be tested, with the anticipated need for increased on-chain capacity due to growing active user adoption and potential regulatory clarity under the new administration.
– The Federal Reserve is projected to adopt dovish measures like yield curve control or expanded asset purchases to address economic challenges, potentially leading to higher inflation expectations that could benefit hard assets like Bitcoin as a hedge against monetary debasement.
