The global exchange-traded fund (ETF) market is poised to grow rapidly, and analysts predict staggering growth by 2035. This means the expected asset value up to 35 trillion dollars, far exceeding the current figure of 13 trillion dollars. Eric Balchunas, senior ETF analyst at Binance, believes this increase was inevitable, driven by the inherent appeal of ETFs and the exciting new frontier of crypto-based services.
Low costs, high liquidity: Formula to attract investors
ETFs have long been a favorite of investors thanks to their inherent advantages. Unlike actively managed funds with hefty fees, these types of funds have low expenses, making them a budget-friendly choice for investors looking to gain exposure to the market.
Additionally, intraday liquidity allows for easy buying and selling throughout the trading day, in stark contrast to the less flexible structure of traditional mutual funds. Their tax efficiency and ability to tailor investment strategies through diverse offerings further strengthen their position as a suitable investment tool.
Source: Eric Balchunas
Balchunas emphasizes these core strengths as key drivers for future growth.
“ETFs offer an attractive combination,” he said, pointing out that low costs, intraday liquidity, tax efficiency and flexibility will continue to attract investor dollars, leading to The snowball effect resulted in more products, more innovative designs, and a growing sales force to promote them.
Cryptocurrencies take center stage: Ranh New world for ETF funds
The emergence of cryptocurrency spot exchange-traded funds is a game changer for the industry. Those innovative products directly track the prices of specific cryptocurrencies, allowing investors to gain exposure to this growing asset class without the complexity of managing their holdings. electronic.
BTC 4-hour price chart | Source: TradingView
The convenience factor along with the ability to hold cryptocurrency ETFs in a traditional brokerage account is proving very attractive to investors venturing into the cryptocurrency market.
The success of the initial offerings paves the way for further expansion. The article predicts more cryptocurrencies, like Solana, could be the next candidates on the ETF list. This not only expands investor options but also brings further legitimacy to the entire cryptocurrency market.
Tokenization and long-term potential
While the near future belongs to ETFs and cryptocurrencies, some analysts acknowledge the growth potential of asset tokenization. This technology involves converting traditional assets such as stocks or real estate into digital tokens that can be traded on the blockchain.
Cow market There’s still room for it the shade
It cannot be denied that the overall outlook of the ETF market is optimistic. The combination of low costs, investor-friendly features and the inclusion of innovative cryptocurrencies paints a picture of a dynamic and rapidly growing market.
Despite some nuances, the trajectory of the ETF market appears to be firmly on the upswing. With a focus on convenience, affordability and diversification, ETFs are poised to be a dominant force in the investment landscape for years to come.
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According to Bitcoinist
