Crypto ETFs Will Surpass Precious Metals To Become Third-Largest Asset Class In US, State Street Says

The analysts at State Street have forecasted that crypto exchange-traded funds (ETFs) will surpass precious metals to become the third-largest ETF asset class in the US by the end of 2025. This growth has been attributed to the increasing interest and demand for cryptocurrencies among advisers and investors.

As of late February 2025, there are already 39 crypto ETFs in the US with a total of approximately $100 billion in assets. BlackRock and Fidelity have emerged as dominant players in this space, with their crypto ETF holdings exceeding $57 billion and $20 billion, respectively.

State Street also anticipates significant regulatory developments that could further accelerate the expansion of crypto ETFs. They expect new product launches to exceed 400 in Europe, where the ETF market is projected to grow by at least 25% and surpass $2.8 trillion in assets.

If these predictions materialize, it would mark a significant milestone for the crypto industry and highlight the rapid growth and adoption of digital assets within traditional financial markets.