Bloomberg ETF analyst James Seyffart believes that the next phase of adoption for crypto-exchange funds (ETFs) will be powered by financial advisers, wire houses and brokers who manage assets for people with a high net value.
Speaking about the podcast “Coin Stories”, Seyffart sketched How these financial institutions, which supervise trillions of dollars in assets, can play a central role in expanding the Bitcoin ETFs market.
He noted that Bitcoin (BTC) ETFs had an exceptionally strong first year in the market, which exceeds the expectations of many analysts. While Bloomberg maintained a bullish look at the ETF’s, he acknowledged that the actual performance surpassed their predictions.
Seyffart said:
“There have been a few outflows in recent weeks, but they have taken around $ 40 billion since their launch, they have $ 110 billion in assets. IBIT is one of the most traded ETFs on a consistent regular basis, reached $ 50 billion in a hundred few days, the previous record was more than a thousand days. So, no matter how you cut it, they have broken every record that you can look at. “
Given this momentum, he suggested that the gradual adoption of Bitcoin ETFs as a portfolio allocation tool for HoognetWored customers could constantly generate success.
Big players to come in
Despite major players such as BlackRock recommend one 1% to 2% BTC allocation In investment portfolios, Seyffart emphasized that “big wire houses and huge banks” do not allow investors to buy crypto -etfs.
He added that wirehouses, financial advisers and brokerage platforms have significant capital of ultra-rich investors, including billionaires.
These entities influence decisions about assets allocation in a broad spectrum of financial portfolios. Seyffart indicated that if these settings begin to include Bitcoin ETFs as a satellite part of their portfolios, such as 5%, this could lead to continuing growth in adoption.
In addition to institutional adoption, Seyffart noted the trend of companies, states and even countries that add Bitcoin to their balance sheets. This can contribute to the legitimacy and stability of Bitcoin as an asset class within traditional finances.
However, he emphasized that increased acceptance with financial intermediaries will probably be the most important motivation of ETF growth.
State in this article
