We believe these ETF inflows will provide a long term tailwind for the market that isn’t fully appreciated. With the current AUM managed by RIAs hovering around an estimated $128 Trillion in 2022, and assuming a 1-2% portfolio allocation to digital assets via a spot ETF product.
We’ve exited the crypto winter with an ecosystem more robust than the previous cycle and with more supportive and broader narratives that should support the new market cycle well into 2024.
Investors should also consider their risk tolerance and time commitment when investing in digital assets. For those seeking more passive exposure, major tokens like Bitcoin and Ethereum, in their expected and regulated ETF wrappers, may be safer choices.