Bloomberg ETF analysts Eric Balchunas and James Seyffart just told us to prepare for a "wave" of new cryptocurrency exchange-traded funds (ETFs) next year, with a Bitcoin and Ethereum combo ETF leading the charge.

This development comes as Bitcoin ETFs have already surpassed gold ETFs in assets under management (AUM), showcasing the rapid adoption and growing investor appetite for digital assets.

The analysts predict that Bitcoin and Ethereum combo ETFs will be the first to hit the market, followed by potential offerings for Litecoin (LTC) and Hedera (HBAR).

This forecast comes as no surprise, given the remarkable performance of Bitcoin ETFs since their launch earlier this year. In a mere 11 months, these funds have managed to outpace gold ETFs, which have been around for over two decades. As of December 16, 2024, the combined assets under management of all Bitcoin ETFs reached a staggering $130 billion, slightly surpassing the total AUM of gold ETFs at $128 billion, according to data from K33 Research.

Eric Balchunas highlighted the significance of this achievement, stating:

It is unreal we even discussing them being this close at 11mo.

The rapid growth of Bitcoin ETFs shows the increasing institutional demand for cryptocurrencies and optimism towards Bitcoin's future. Leading the pack is BlackRock's iShares Bitcoin Trust (IBIT), which now holds nearly $60 billion in assets, even surpassing BlackRock's own gold ETF, iShares Gold Trust (IAU), earlier this year.

This shift in investor preference hasn't gone unnoticed. JPMorgan observed back in October that investors are increasingly turning to Bitcoin and gold as part of a "debasement trade," a strategy aimed at hedging against economic uncertainties.

As Bitcoin ETFs continue to gain traction, analysts at Bitfinex are predicting even more growth on the horizon. In a December 17 market report, they forecasted that Bitcoin could reach a minimum of $145,000 by mid-2025, with a best-case scenario of $200,000 under more favorable conditions. 

Talk about a bull run – this prediction makes the recent surge look like a mere warm-up lap.

But it's not just the United States that's experiencing a crypto ETF boom. Across the pond, Europe is witnessing its own revolution in the way people invest. The humble monthly savings plan, or investment plan, has been credited with sparking a surge in retail adoption of ETFs, particularly in Germany.

Timo Toenges, head of EMEA digital wealth, partnerships and platforms at BlackRock, noted, "What we're seeing internally in BlackRock is that the German story is spreading through Europe." It's like watching a financial version of the domino effect, with one country after another falling for the allure of crypto ETFs.

Research commissioned by BlackRock and conducted by extraETF reveals that the number of savings plans in Germany has skyrocketed by 33% over the past year, from 7.1 million to 9.5 million.

The trend isn't confined to Germany, either. ExtraETF estimates that the number of active ETF savings plans in continental European countries (excluding Germany) has more than doubled, reaching 1.3 million at the end of 2024 compared to 0.5 million in 20231. It's as if Europe collectively decided to trade in their piggy banks for crypto wallets.

Even the United Kingdom is getting in on the action. InvestEngine, an ETF-only digital investment platform, recently launched LifePlans, a set of five investment portfolios, positioning itself for the expected boom. The platform has become the fastest-growing in the UK, according to fund research house Fundscape, tripling its assets in the third quarter compared to the same quarter last year.

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