Crypto Advisors: The Future of ETFs in 2025
Happy New Year, advisors! We look forward to bringing you crypto news for advisors every Thursday this year!
In today’s issue, our first newsletter of 2025, Roxanna Islam from TMX VettaFi provides a comprehensive guide to the world of crypto ETFs, looking at what happened in 2024 and what’s expected in 2025.
Then, Griffin Kelly from The Daily Upside answers questions about ETFs in Ask an Expert.
Crypto ETFs - 2024 in Review and Why They Still Matter in 2025
In the broader crypto industry, exchange-traded funds (ETFs) may have taken a backseat as other market influences came into play. Yet for advisors, retail investors, and many institutional stakeholders, ETFs remain pivotal in bridging traditional finance (TradFi) with decentralized finance (DeFi).
2024: Bitcoin’s Major Influence on ETFs
To highlight the significant role of crypto ETFs, consider these stats from 2024:
- ETFs attracted over $1 trillion in net inflows.
- The iShares Bitcoin Trust (IBIT) noted $37.2 billion in inflows, ranking third behind popular large-cap ETFs.
- By year-end, IBIT's assets reached $52.7 billion, surpassing the iShares Gold Trust.
- The Fidelity Wise Origin Bitcoin Fund became Fidelity’s largest ETF with over $19.6 billion in assets.
Looking ahead, with promising changes in regulation and market dynamics, various crypto ETFs could emerge, focusing on different digital assets, fostering innovation in 2025 and beyond.
Innovations in 2025
As we approach 2025, multiple ETF proposals are already in the pipeline, potentially including more asset types beyond Bitcoin and Ether. This includes suggestions for innovative combined products like multi-token funds, signaling the next wave in asset management.
For a detailed examination, stay tuned as we unfold insights from the crypto world and the evolving landscape of ETFs.
