Dorsey Wealth Management Predicts Crypto ETF Assets Will Surpass Precious Metal ETFs Within a Year

BlockBeats News, March 3rd, according to the Financial Times, State Street Bank predicts that the soaring demand for cryptocurrency ETFs will drive its total assets in North America to surpass precious metal ETFs, becoming the third largest asset class in the fast-growing $15 trillion ETF industry, only behind stocks and bonds.

Frank Koudelka, Global Head of ETF Solutions at State Street Bank, stated that the growth of cryptocurrency ETFs has exceeded expectations, with data showing increased interest from advisors in incorporating cryptocurrency into portfolios. A spot cryptocurrency ETF was only approved for listing in the U.S. last year but has already attracted $136 billion in assets, despite a recent sell-off in the crypto market.

State Street Bank also predicts that the U.S. Securities and Exchange Commission (SEC) will approve more digital asset ETFs this year and expects funds based on the top ten tokens by market value to be listed by 2025. Furthermore, the bank anticipates that the SEC will approve a "physical" creation and redemption mechanism for cryptocurrency ETFs, enhancing trading efficiency.