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.