On December 23, the Chicago Mercantile Exchange and the cryptocurrency benchmark index provider CF Benchmarks stated that investment advisors are expected to surpass hedge funds as the largest holders of the US Bitcoin spot ETF next year.
The demand for the US Bitcoin spot ETF is mainly from hedge fund managers, who hold 45.3% of the ETF shares. Investment advisors are in second place, accounting for 28%.
According to CF Benchmarks' forecast, this situation will change by 2025, with investment advisors expected to hold more than 50% of the market share in Bitcoin and Ethereum ETFs by 2025.
CF Benchmarks stated in the report, "We expect the allocation share of investment advisors to exceed 50% as the $88 trillion US wealth management industry begins to embrace these tools, exceeding the record $40 billion net inflows in 2024."
"This shift will be driven by growing client demand, deeper understanding of digital assets, and product maturity, which may reshape the current ownership structure as these products become a mainstay in model portfolios," the index provider said.
Currently, investment advisors are in the lead in the Ethereum ETF market and are expected to further expand their lead next year. (CoinDesk)
