$150 Billion Inflows Expected for Bitcoin ETFs by 2025
Ric Edelman predicts that spot Bitcoin ETFs will see a surge in inflows, reaching $150 billion by the end of 2025, up from the current $5 billion. This represents a significant transformation in cryptocurrency investment. Independent financial advisors, who manage around $8 trillion in assets, are expected to contribute to this surge. Recent studies show that 77% of these advisors are ready to allocate to Bitcoin ETFs, potentially resulting in $150 billion worth of flows. This calculation only takes into account independent advisors, leaving out the potential from wirehouses, broker-dealers, and institutional investors.
Bitcoin ETF Investments Led by RIAs and Family Offices
RIAs, family offices, and individuals rotating off from other products are leading the charge in Bitcoin ETF investments. This indicates a growing acceptance and recognition of Bitcoin ETFs within the investment community. Matt Hougan highlights the regulated and investor-friendly nature of Bitcoin ETFs, praising their efficiency and low fees. Both experts agree on the strategic value of including spot Bitcoin ETFs in investment portfolios for diversification purposes. They view Bitcoin as a non-correlated asset that can be managed professionally without adding volatility to the portfolio.
Bitcoin Price Could Reach $150,000
Ric Edelman suggests that due to the fixed supply and increasing demand dynamics, the price of Bitcoin could reach $150,000 within two years. He excludes inflows from wirehouses, broker-dealers, and institutional investors in his estimate. The success of Bitcoin ETFs compared to traditional gold ETFs is attributed to their competitive fee structure and strong demand. Bitwise Bitcoin ETF, for example, charges half the fees of the largest gold ETF. At present, BTC is trading at $51,808.
Hot Take: Bitcoin ETFs Poised for Massive Growth
Ric Edelman and Matt Hougan are optimistic about the future of spot Bitcoin ETFs. They anticipate a surge in inflows, with Edelman predicting $150 billion by 2025. The potential involvement of independent financial advisors, as well as other market players, is expected to drive this growth. Bitcoin ETF investments are being led by RIAs, family offices, and individuals transitioning from other products. The experts highlight the benefits of including Bitcoin ETFs in investment portfolios for diversification and stress the regulated and investor-friendly nature of these instruments. With the potential for significant price appreciation, Bitcoin ETFs are positioned for massive growth in the coming years.
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