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WallStreet Forex Robot 3.0
crypto.news 2025-03-03 07:26:29

Crypto ETFs can become third-largest asset class in US by end-2025, State Street forecasts

Analysts at State Street forecast that crypto ETFs will outgrow precious metals in North America by the end of 2025, cementing their position as the third-largest ETF asset class. Cryptocurrency exchange-traded funds are set to overtake precious metal in the United States by the end of 2025, making them the third-largest ETF asset class, behind equities and bonds, the Financial Times reports , citing a forecast by State Street. “We have been very surprised by the speed of growth of crypto. I expected there to be pent-up demand, but I didn’t expect it to be as strong as it was.” Frank Koudelka, State Street’s global head of ETF solutions You might also like: US spot Bitcoin ETFs recorded over $3.5b in net outflows in February State Street expects the U.S. Securities and Exchange Commission to allow ETFs based on altcoins in 2025. According to Koudelka, there are “a lot of other coins out there that ETFs can potential solve for.” The bank also predicts that the SEC will approve “in-kind” trading for crypto ETFs, allowing transactions in crypto instead of cash. As of late February, a total of 39 crypto ETFs in the U.S. amassed around $100 billion, per data from ETF Database. BlackRock and Fidelity are the largest players, holding in their crypto ETFs over $57 billion and $20 billion, respectively. For comparison, North American precious metal ETFs, including the $85 billion SPDR Gold Trust, hold a combined $165 billion, the FT reports. However, analysts at State Street expect crypto ETFs to surpass that amount this year. Read more: Crypto market gains $300B amid Trump’s crypto strategic reserve announcement

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