Bitcoin ETFs: Unleashing the Trillion-Dollar Potential – Survey Forecasts $30 Trillion in Global Asset Value by 2040

Institutional investors are unrelenting in push to welcome Bitcoin and crypto ETFs. The embrace of these new class of investors can propel global crypto asset value to $30 trillion by 2040. A Brown Brothers Harriman (BBH) survey has revealed that the growing interest and adoption of Bitcoin (BTC) Exchange Traded Funds (ETFs) could push the [...]

Bitcoin ETFs: Unleashing the Trillion-Dollar Potential – Survey Forecasts $30 Trillion in Global Asset Value by 2040
  • Institutional investors are unrelenting in push to welcome Bitcoin and crypto ETFs.
  • The embrace of these new class of investors can propel global crypto asset value to $30 trillion by 2040.

A Brown Brothers Harriman (BBH) survey has revealed that the growing interest and adoption of Bitcoin (BTC) Exchange Traded Funds (ETFs) could push the global asset value of these funds to around $30 trillion over the next ten years. Data for the BBH’s 10th Annual ETF Survey was gathered from 325 investors worldwide with a significant percentage of these respondents managing assets with over $1 billion.

The respondents talked about the growing popularity and confidence in BTC ETFs and about 60% of them indicated interest in increasing their use of these investment vehicles, citing that they are more than just passive products. Similarly, Bloomberg ETF analyst Eric Balchunas predicted that $30 trillion worth of capital could make its way into the Bitcoin market when the SEC approves a spot BTC ETF.

Currently, the total market value of the cryptocurrency market is around $1.19 trillion. Based on both predictions, the value of the market would be jumping by about 30 times its current worth. Notably, this $30 trillion is the estimated worth of the Assets Under Management (AUM) of U.S. financial advisors.

BBH’s Global ETF Head, Shawn McNinch highlighted that ETFs play a vital role in investors’ allocation strategy while pointing out the increasing usage of ETFs across asset classes and structures.

“If you think about ETFs, they are really now core, at the center of a lot of investors’ allocation strategy. There’s more and more usage of ETFs, more asset classes, more structures,” McNinch said.

Bitcoin ETFs: Institutional Investors Wants a Cut

As the clamor for Bitcoin ETFs grows, Vanguard, BlackRock, and State Street Global Advisors’ position in this ecosystem with their “big three” Bitcoin ETFs also solidifies the product class’ credibility and potential for continued expansion.

This journey to mainstream Bitcoin ETF adoption has not been without several challenges including opposition from the SEC. Concerns of trading volume and liquidity which were previously raised have been addressed effectively and this is seen in the tight spreads and cost-effective market accessibility for investors.

Even though no Bitcoin ETFs have been approved by the U.S. regulator before now, there are other ETF products in the market which have been performing well. Their performance has helped to boost investors’ confidence in the market to a large extent and this has translated to an increased demand for more regulated and promising investment options.

While investment management firms like BlackRock, Fidelity, WisdomTree and the rest are exploring ways they can get a cut of the Bitcoin ETF hype, a majority of them are still skeptical about the nascent industry owing to volatility and its highly unregulated nature.

With top crypto exchanges like Binance and Coinbase being charged for offering unregistered securities, institutional investors will be more at ease when Bitcoin and altcoins are offered through a regulated exchange-traded fund.


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