TaoFu Bank: Predicts that by the end of this year, cryptocurrency ETFs will surpass North American precious metals ETFs

According to a message from ChainCatcher, as reported by the Financial Times, based on predictions from State Street, the world's largest ETF service provider, demand for cryptocurrency ETFs is surging. It is expected that by the end of this year, their total assets will surpass those of North American precious metal ETFs. This shift would make digital token ETFs the third-largest asset category in the $15 trillion ETF industry, trailing only stocks and bonds and exceeding real estate, alternative investments and multi-asset funds.

Frank Koudelka, Global Head of ETF Solutions at State Street said: "The growth rate of cryptocurrencies has surprised us greatly. I anticipated there would be pent-up demand but didn't expect it to be so strong." He predicts that cryptocurrency ETFs will continue to grow rapidly this year and points out data showing an increasing number of investment advisors are interested in cryptocurrencies and including them in their portfolios. Precious metal ETFs have a 20-year head start with SPDR Gold Trust (GLD), the first physically backed gold ETF with a scale of $85 billion launched in 2004 still being the largest precious metals'ETF today. However, State Street expects that North American precious metals'ETF total assets worth $165 billion will be surpassed by cryptocurrency EFTs this year.

State Street also predicts that more digital asset EFTs will get approval from The U.S Securities Exchange Commission (SEC) this year. In addition to existing Bitcoin and Ethereum EFTS , fund management companies have applied for launching EFTS based on multiple tokens such as SOL,XRP etc . By 2025 , State street anticipates approval for EFTS based on top ten tokens according to market value.