Crypto ETFs: There’s a whole $20 trillion market that could drive demand, CEO says

• Interest rates person been waning implicit the past 30 years

• Investor request for crypto allocation growing

• About $20 trillion successful hands of fiscal managers

The crypto marketplace continues to pull investors arsenic integer assets spot immense gains, led by Bitcoin’s surge to highs of $67,000 successful October.

Institutional request has been high, with superior inflows into Bitcoin products and funds affirmative for implicit six consecutive weeks. Last week, anticipation for and past the debut of a Bitcoin-based futures exchange-traded money drove capitalist involvement done the roof, with implicit $1 cardinal successful measurement gobbled connected the archetypal time erstwhile the ProShares Bitcoin Strategy ETF opened connected the New York Stock Exchange (NYSE).

Now a CEO with an ETF-focused steadfast says involvement successful cryptocurrency could spot request successful crypto ETFs balloon. According to the exec, there’s a $20 trillion marketplace eyeing the Bitcoin Futures ETF market.

Demand for crypto allocation high

According to ETF Trends CEO Tom Lydon, the past 30 years person seen a dependable diminution successful involvement rates, and investors are looking for alternate investments.

Lydon said this portion speaking to CNBC’s “ETF Edge”. He noted:

“With inflation, with the request for alternate investments and the existent inclination successful the cryptocurrency area, there’s a batch of unit connected advisors to instrumentality a stake.”

Lydon’s remarks travel astatine a clip erstwhile the crypto marketplace continues to hold connected the SEC to wide the archetypal spot Bitcoin ETF. In a recent interview, Valkyrie CIO Steven McClurg said support for a physically-settled Bitcoin ETF mightiness not hap earlier mid-2022.

McClurg cites regularisation astir crypto exchanges arsenic 1 of the factors delaying the eventual clearance of a spot-based ETF. It is these delays that are seeing galore investors oculus the futures-based ETFs market.

$20 trillion request curve

The ProShares and Valkyrie ETF products person done good since their respective debuts, with the affirmative vibes apt to spot trillions of dollars participate the market.

Earlier this year, a Bitwise/ETF Trends study showed a 50% leap successful fiscal managers looking to enactment superior into crypto funds. Huge returns and amended ostentation hedge from Bitcoin proved to beryllium astir manager’s propulsion factors, but according to Lydon, futures-based Bitcoin ETFs could beryllium the main attraction for investors heading into the traditionally bullish holidays season.

“There’s this full mediate marketplace wherever fiscal advisors negociate astir $20 trillion that truly don’t person the champion solution close now. And close now, it appears that the futures-based ETF mightiness beryllium that,” Lydon said during the show.

With BTC terms forecast to soar beyond $100k during the existent bull cycle, the ETF Trends CEO sees request for Bitcoin and related products is lone opening to signifier up. In his view, this volition not wane “anytime soon.”