What You Need to Know

• Investment advisers are anticipated to expand their ownership of BTC and ETH ETFs beyond 50% in 2025, as per CF Benchmarks.
• The provider expects that unconventional monetary policies from the Federal Reserve will enhance confidence in digital assets as regulatory clarity increases.

Investment advisors are likely to become the predominant owners of U.S.-listed spot bitcoin ETFs in the upcoming year, overshadowing hedge funds, according to CF Benchmarks.

As of now, hedge funds control 45.3% of these funds, while investment advisers manage a slightly lesser share of 28%. This trend is set to reverse, with projections indicating investment advisors could dominate both BTC and ETH ETF markets in 2025, achieving a majority ownership.

CF Benchmarks maintains that significant transformations driven by client demand and increased understanding of digital assets are set to change the current market dynamics.

Additionally, they predict that new entrants and regulations might challenge the existing market landscape in stablecoins, particularly concerning major players like USDT.

Investment advisers could extend their current leadership position in the ether ETF market, capitalizing on the rise of asset tokenization and other innovations within the digital financial ecosystem.