Kraken Strategy Director: Sovereign Wealth Funds and Others Will Double the Size of Crypto ETFs to $50 Billion

Odaily Odaily Kraken Strategy Director Thomas Perfumo predicts that the scale of cryptocurrency ETF capital inflows will double to US$50 billion in 2025. He said that "ultimate allocation institutions" such as sovereign wealth funds, endowment funds and pension funds will enter the market one after another next year, and large asset management institutions have begun to consider allocating 1% to 3% of their portfolios to crypto assets. Data shows that the total amount of Bitcoin held by 11 Bitcoin ETF issuers has exceeded US$90 billion, accounting for more than 5% of the total supply of Bitcoin. The participation of mainstream asset management institutions such as BlackRock and Fidelity has reduced investment costs and risks while also increasing the market recognition of crypto assets. Perfumo further pointed out that Trump's victory in the US election has injected confidence into the market. Trump previously promised to establish a strategic reserve of Bitcoin, fire SEC Chairman Gary Gensler and promote stablecoin legislation. (DLNews)