TechFlow news — On March 3, according to the Financial Times, State Street predicts that surging demand for cryptocurrency exchange-traded funds (ETFs) will push their total assets in North America above those of precious metals ETFs, making crypto the third-largest asset class in the rapidly growing $15 trillion ETF industry, behind only stocks and bonds.
Frank Koudelka, head of global ETF solutions at State Street, said the growth of cryptocurrency ETFs has exceeded expectations, with data showing increasing interest from more advisors in including crypto in investment portfolios. Spot cryptocurrency ETFs were only approved for listing in the U.S. last year, yet they have already attracted $136 billion in cumulative inflows, despite a recent market sell-off over the past month.
State Street also forecasts that the U.S. Securities and Exchange Commission (SEC) will approve additional digital asset ETFs this year, expecting funds based on the top ten market-cap tokens to be permitted by 2025. Additionally, the bank anticipates the SEC will approve "in-kind" creation and redemption mechanisms for cryptocurrency ETFs, improving trading efficiency.
