Investment Advisors Set to Overtake Hedge Funds as Dominant Holders of U.S. Bitcoin Spot ETF by 2025

COINOTAG reported on December 23 that the Chicago Mercantile Exchange (CME) alongside CF Benchmarks, a provider of cryptocurrency benchmark indices, predicts a significant shift in the cryptocurrency investment landscape. By next year, investment advisors are likely to surpass hedge funds as the foremost holders of the U.S. Bitcoin spot Exchange-Traded Fund (ETF). Currently, hedge fund managers account for approximately 45.3% of ETF shares, in contrast to the 28% held by investment advisors.

Looking ahead, CF Benchmarks anticipates that by 2025, this dynamic will evolve, with investment advisors poised to capture over 50% of the market share in Bitcoin and Ethereum ETFs. The firm highlighted that the expected net inflows could exceed $40 billion by 2024, driven by a growing embrace of these financial instruments within the staggering $88 trillion U.S. wealth management sector. Investment advisors are also expected to maintain dominance in the Ethereum ETF sector, indicating a robust future for digital asset integration in traditional investment strategies.