State Street predicts that the size of crypto ETF assets will surpass precious metal ETFs within this year
On March 3rd, according to the Financial Times, Deutsche Bank predicts that the surge in demand for cryptocurrency ETFs will surpass precious metal ETFs in North America, becoming the third largest asset class in the rapidly growing $15 trillion ETF industry, only behind stocks and bonds.
Frank Koudelka, Global Head of ETF Solutions at Deutsche Bank, said that the growth rate of cryptocurrency ETFs has exceeded expectations, with data showing more advisors are interested in including cryptocurrencies in their portfolios. Spot cryptocurrency ETFs were only approved for listing in the US last year, but have already attracted $136 billion in funds, despite a recent sell-off in the crypto market.
Deutsche Bank also predicts that the US Securities and Exchange Commission (SEC) will approve more digital asset ETFs this year, and expects funds based on the top ten tokens by market value to be listed by 2025. In addition, the bank expects the SEC to approve a "physical" creation and redemption mechanism for cryptocurrency ETFs, improving trading efficiency.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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