According to James Seyffart, an exchange-traded fund (ETF) analyst at Bloomberg, the next phase of adoption for Crypto asset ETFs will be driven by financial advisors managing high-net-worth individual assets, large brokerages, and brokers.

In the "Coin Stories" podcast, Seyffart outlined how these financial institutions, which manage trillions of dollars in assets, can play a core role in expanding the BTC ETF market.

He noted that the BTC ETF's performance in its first year in the market has been exceptionally strong, exceeding the expectations of many analysts. While Bloomberg is optimistic about BTC ETFs, he acknowledged that the actual performance has surpassed their forecasts.

Seyffart stated that while there has been some capital outflow in recent weeks, the assets under these ETFs have only decreased by about $40 billion from their peak, and currently stand at around $110 billion. IBIT has been one of the most actively traded ETFs, reaching $50 billion in assets in just over 100 days, a record that previously took over 1,000 days to achieve. Therefore, from any angle, they have broken all the records that can be seen.

Given this momentum, he believes that using BTC ETFs as a tool for portfolio allocation for high-net-worth clients may drive their continued success.

While large companies like BlackRock have suggested allocating 1% to 2% of portfolios to BTC, Seyffart emphasized that "large brokerages and large banks" do not currently allow investors to purchase Crypto asset ETFs.

He added that these brokerages, financial advisors, and brokerage platforms control a vast amount of capital, including that of billionaires. These institutions influence asset allocation decisions across a wide range of financial portfolios. Seyffart stated that if these institutions start to include BTC ETFs as a part of their portfolios, such as a 5% allocation, this could drive continued adoption.

In addition to institutional adoption, Seyffart also noted the trend of corporations, states, and even countries adding BTC to their balance sheets, which helps to legitimize and stabilize BTC as an asset class in traditional finance.

However, he emphasized that the increased acceptance of financial intermediaries is likely to be a key driver of ETF growth.

Today, asset management firm Grayscale released a report stating that high-net-worth investors are showing interest in Crypto assets. Grayscale CEO Peter Mintzberg stated on social media that he is "pleased to see the momentum shifting for Crypto assets, with more investors recognizing the value of digital assets. Notably, 38% of high-net-worth individuals believe their portfolios will include Crypto assets in the future."