2024

Solana

<p class="is-style-lead">The global Exchange-Traded Fund (<a href="https://crypto.news/spot-btc-etfs-record-first-day-of-outflows-in-4-weeks/" data-type="link" data-id="https://crypto.news/spot-btc-etfs-record-first-day-of-outflows-in-4-weeks/" target="_blank" rel="">ETF</a>) market could witness some remarkable growth over the next decade. </p> 
<p>Assets in the global ETF are projected to reach $35 trillion by 2035, tripling from their current $13 trillion. This prediction comes from Eric Balchunas, Senior ETF Analyst for Binance.</p> 
<p>“[ETFs] low-costs, intra-day liq, tax efficiency, flexibility etc. will continue to attract investor cash (and traders’ volume) which will result in more new products, innovative designs and more salespeople,” Balchunas <a href="https://x.com/EricBalchunas/status/1801594241941999848" target="_blank" rel="">posted</a> on X.</p> 
<p>This forecast is based on a conservative 10% compound annual growth rate (CAGR), notably lower than the 17% and 25% rates seen in the past two decades.</p> 
<p>While market returns might not match previous highs, the appeal of ETFs remains strong due to the adoption of several <a href="https://crypto.news/gary-gensler-ethereum-etfs-likely-approved-by-end-of-summer/" target="_blank" data-type="link" data-id="https://crypto.news/gary-gensler-ethereum-etfs-likely-approved-by-end-of-summer/" rel="">spot crypto ETFs </a>that enhance their advantages and diversity in the market.</p> 
<p>A <a href="https://crypto.news/eth-to-btc-trader-exposure-ratio-increased-ahead-of-etf-approval/" rel="">spot crypto ETF</a> is a type of ETF that tracks the price of a specific crypto and invests portfolio funds into that crypto. These funds are traded on public exchanges but generally track a particular crypto. Like other similar funds, crypto ETFs are listed on regular stock exchanges, and investors can hold them in their standard brokerage accounts, offering them a convenient way to invest in crypto.</p> 
<h2 class="wp-block-heading" id="market-expansion">Market expansion</h2> 
<p>The anticipated benefits are likely to attract significant investor funds and trading activity — both in traditional and crypto ETFs. As the market expands, rising competition in ETFs is expected to fuel the development of creative concepts.</p> 
<p>In addition, the market’s growth could include crypto and asset tokenization. Given the growing acceptance of crypto ETFs, more and more crypto — like <a href="https://crypto.news/bloomberg-analyst-foresees-spot-solana-etf-following-ethereum-approval/" target="_blank" data-type="link" data-id="https://crypto.news/bloomberg-analyst-foresees-spot-solana-etf-following-ethereum-approval/" rel="">Solana</a> — could be the next in line for an ETF listing.</p> 
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Yes.. That said, there's huge hurdles for tokenization, regulatory being one massive one and again. And end users of ETFs already have a frictionless experience (harder to make case to changE). So I obv disagree with your prediction, am on record with it now. We'll see tho!</p>— Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1801596088329121887?ref_src=twsrc%5Etfw" target="_blank" rel="">June 14, 2024</a>
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<p>Asset tokenization is a growing topic, but it is not anticipated to cause major disruption in the ETF market in the near future. Issues like <a href="https://crypto.news/money20-20-the-tokenization-industry-needs-to-address-interoperability-issues/" target="_blank" data-type="link" data-id="https://crypto.news/money20-20-the-tokenization-industry-needs-to-address-interoperability-issues/" rel="">interoperability</a> surrounding tokenization mean that the technology and its impact still have time to gain traction and grow into the norm for financial institutions.</p> 
<p>But 2035 is over ten years away, so institutions could eventually complement ETFs, enhancing their functionality and growing global growth to $35 trillion.&nbsp;</p>

Analyst: Global ETF market could hit $35t by 2035

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