Kraken's Chief Strategy Officer: The entry of sovereign wealth funds and others will double the size of crypto ETFs to $50 billion

ChainCatcher news, according to DLNews, Kraken's strategy chief Thomas Perfumo expects that the inflow of funds into cryptocurrency ETFs will double to $50 billion by 2025. He stated that "ultimate allocation institutions" such as sovereign wealth funds, endowments, and pension funds will gradually enter the market next year, and large asset management institutions have begun to consider allocating 1% to 3% of their investment portfolios to crypto assets.

Data shows that the total amount of Bitcoin held by 11 Bitcoin ETF issuers has exceeded $90 billion, accounting for more than 5% of the total Bitcoin supply. The participation of mainstream asset management institutions like BlackRock and Fidelity has not only reduced investment costs and risks but also enhanced the market recognition of crypto assets.

Perfumo further pointed out that Trump's victory in the U.S. election has injected confidence into the market. Trump previously promised to establish a Bitcoin strategic reserve, fire SEC Chairman Gary Gensler, and promote stablecoin legislation.