For the $30 trillion wealth management industry, this could mean a massive influx of funds.
Blockchain expert Fiorenzo Manganiello expects that once the floodgates open, cryptocurrency ETFs will form 5% of hedge fund and pension fund portfolios by 2025.
As investors are now able to access bitcoin the same way they buy stocks, BlackRock (NYSE:BLK)’s spot Bitcoin ETF has accumulated $16.7 billion in assets since its launch in January 2024.
Moreover, the Ether ETF is poised to gain final approval from the US Securities and Exchange Commission (SEC) this summer.
“[W]ith BlackRock bearing the standard for crypto pick-up among institutional investors, you can only predict others will follow. It’s only a matter of time, too – and especially with the Ether ETF set to further progress the market,” Manganiello told Investing.com.
Manganiello, co-founder and managing partner of LIAN Group, said these regulatory advancements will prompt institutional investors to increasingly incorporate cryptocurrency into their portfolios.
“Crypto ETFs have been given the regulatory green light and, for an asset that has long been considered volatile and novel, it’s a big step. Crypto is beginning to prove the critics wrong; it’s been given regulatory legitimacy,” Manganiello said in an interview with Investing.com.
“These institutions will look to take advantage of what has long been considered a “retail market”, diversify their assets, and open their arms to these innovative digital investments.”
LIAN Group, an investment firm involved in digital infrastructure, AI, cryptocurrency, and blockchain, has deployed over $500 million in invested capital. One of their notable ventures is Cowa, the largest European blockchain infrastructure company powered by renewable energy.
Manganiello also highlighted the importance of institutional investors staying ahead of the curve by adopting a “millennial savviness,” which embraces emerging alternative investments.
“Institutional investors, like hedge funds and pension funds, have to be ready to consider crypto as an asset – especially with crypto ETFs quickly gaining approval,” he noted.
Source: Cryptocurrency - investing.com
