Expected Surge in Traded Cryptocurrency Products:
Matt Hogan, Chief Investment Officer at Bitwise, predicts that the market for exchange-traded cryptocurrency products (ETPs) will see unprecedented growth by the end of 2025, driven by increasing interest from major financial institutions.
Hogan noted that 2024 represented a turning point, with the launch of the first U.S. exchange-traded products for Bitcoin and Ethereum, providing organized exposure mechanisms that attracted the attention of institutions and financial advisors to reassess their investment strategies in digital assets.
Some key trends observed by Hogan:
A significant shift in asset allocation standards, where a 5% portfolio allocation is now the "new norm" instead of the previous 1%, indicating growing institutional confidence in cryptocurrencies.
Expectations of massive inflows to crypto ETP products estimated in the billions of dollars.
Bitcoin remains in first place in terms of trading volume, while Ethereum has started to attract increasing interest as the next most appealing asset for institutions.
Hogan confirmed that most major companies will provide access to traded cryptocurrency products by the end of 2025, strengthening the position of digital assets as a core component of future investment portfolios.