State Street analysts predict that cryptocurrency exchange-traded funds (ETFs) will surpass precious metals in terms of total assets by the end of 2025, positioning them as the third-largest asset class in North America, behind equities and bonds.
According to a forecast shared with the Financial Times, crypto ETFs are expected to experience significant growth, outpacing precious metals as an asset class in the U.S. by 2025. Frank Koudelka, State Street’s global head of ETF solutions, expressed surprise at the rapid expansion of the crypto sector, noting, “I expected there to be pent-up demand, but I didn’t expect it to be as strong as it was.”
State Street also anticipates that the U.S. Securities and Exchange Commission (SEC) will approve ETFs based on altcoins within the next year, opening the door for a wider variety of cryptocurrencies to be included in ETF offerings. Additionally, the bank forecasts that the SEC will allow “in-kind” trading for crypto ETFs, facilitating transactions in digital assets rather than cash.
As of late February 2025, U.S. crypto ETFs had accumulated nearly $100 billion in assets, according to ETF Database. Major players like BlackRock and Fidelity lead the pack, with their crypto ETFs holding over $57 billion and $20 billion, respectively.
In comparison, North American precious metal ETFs, such as the $85 billion SPDR Gold Trust, currently hold a combined total of $165 billion. However, analysts predict that crypto ETFs will surpass this amount by the end of this year.
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