Crypto ETFs to Overtake Precious Metals by 2025

Analysts at State Street forecast that crypto ETFs will outgrow precious metals in North America by the end of 2025, solidifying their status as the third-largest ETF asset class.

Cryptocurrency exchange-traded funds are projected to outpace precious metals in the U.S. by 2025, becoming the third-largest ETF category, following equities and bonds, according to the Financial Times, which cites State Street’s forecast.

> “We have been very surprised by the speed of growth of crypto. I expected there to be pent-up demand, but I didn’t expect it to be as strong as it was.”
> — Frank Koudelka, State Street’s global head of ETF solutions

In February, U.S. spot Bitcoin ETFs recorded over $3.5 billion in net outflows. State Street anticipates the U.S. Securities and Exchange Commission will permit ETFs based on altcoins in 2025. Koudelka noted, “there are a lot of other coins out there that ETFs can potentially solve for.” Furthermore, the bank predicts approval for “in-kind” trading for crypto ETFs, allowing transactions in crypto rather than cash.

As of late February, there are 39 crypto ETFs in the U.S., with a total of around $100 billion, according to ETF Database. BlackRock and Fidelity are significant players, with $57 billion and $20 billion in their crypto ETFs, respectively.

In contrast, North American precious metal ETFs, including the $85 billion SPDR Gold Trust, hold a total of $165 billion. However, analysts at State Street expect crypto ETFs to surpass this amount this year.

Read more: Crypto market gains $300B amid Trump’s crypto strategic reserve announcement.