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James Seyffart, an analyst at Bloomberg’s Exchange Traded Fund (ETF), believes thatThe next phase of adoption of Crypto Asset ETF will be driven by financial advisors, large brokers and brokers who manage assets at high net worth individuals.
In the “Coin Stories” podcast, Seyffart outlines how these financial institutions, which manage trillions of dollars in assets, play a central role in expanding the BTC ETF market.
He noted that BTC ETFs performed unusually strongly in the first year in the market, exceeding expectations from many analysts.While Bloomberg is optimistic about BTC ETFs, he admits that the actual performance exceeds their predictions.
“There has indeed been some outflows in recent weeks, but since its launch, its funding size has only dropped by about $40 billion at its peak, and these ETFs are currently about $110 billion in assets. IBIT has been one of the most active ETFs, reaching $50 billion in just one hundred days, compared to a previous record that was reached over a thousand days. So, from which point of view, they have broken all the records that can be seen.”
Given this momentum, he believes that using BTC ETF as a tool for portfolio allocation for high-net-worth clients may drive its continued success.
Despite the advice of big companies like BlackRockAllocation of 1% to 2% of BTC in your portfolio, but Seyffart stressed that “large brokerage firms and large banks” do not allow investors to purchase Crypto asset ETFs.
He added that these brokerage firms, financial advisers and brokerage platforms control a large amount of money, including billionaires.
These institutions influence asset allocation decisions in a wide range of financial portfolios.Seyffart said that if these institutions start to use BTC ETFs as part of their portfolio, for example, 5%, this could drive continued growth in adoption.
In addition to institutional adoption, Seyffart also notes the trend of businesses, states and even states incorporating BTC into their balance sheets.This helps to enhance the legitimacy and stability of BTC as an asset class in the traditional financial field.
However, he stressed thatIncreased acceptance of financial intermediaries may be a key driver of ETF growth.
Today, asset management firm Grayscale released a report claiming high-net-worth investors have developed an interest in Crypto assets.
“It’s great to see the momentum of Crypto assets is changing, and more investors are beginning to recognize the value of digital assets. It’s worth noting that 38% of high-net-worth investors believe their portfolios will include Crypto assets in the future.”
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