Blockchain expert predicts crypto ETFs to comprise 5% of hedge fund and pension fund portfolios by 2025


9th July 2024 – (New York) According to prominent blockchain expert Fiorenzo Manganiello, crypto exchange-traded funds (ETFs) are projected to make up 5% of hedge fund and pension fund portfolios by 2025. Manganiello, the co-founder and managing partner of LIAN Group, made this prediction in light of the success of BlackRock’s spot bitcoin ETF, which has amassed $16.7 billion in assets since its launch in January 2024. Furthermore, the anticipated approval of the Ether ETF by the U.S. Securities and Exchange Commission (SEC) this summer is expected to further fuel institutional investors’ entry into the crypto market.

Manganiello asserts that regulatory greenlights for crypto ETFs will serve as an invitation for institutional investors to embrace this asset class. While the crypto market has traditionally been dominated by retail investors, it is now gaining recognition as a viable option for hedge funds and pension funds.

The rapid growth of BlackRock’s spot bitcoin ETF serves as a significant indicator of institutional interest. Manganiello stated, “Crypto has long been seen as a retail market, but with BlackRock entering the scene and rapidly growing its own spot ETF, it won’t be long before other institutions follow suit and invest in crypto. The approval of the Ether ETF will only accelerate this trend.”

Manganiello highlights the profitability of crypto and the necessity for institutional investors to diversify their portfolios. He believes that by the end of next year, crypto ETFs will comprise a substantial portion, at least 5%, of hedge fund and pension fund portfolios.

Adaptability is also emphasized as a crucial factor for institutional investors. Manganiello emphasizes the importance of embracing emerging and innovative alternative investments, shedding the mindset of preserving the status quo.

With the rapid approval of crypto ETFs by regulatory bodies, institutional investors such as hedge funds and pension funds need to be prepared to consider cryptocurrencies as assets. The financial landscape is poised for significant changes as cryptocurrencies become a staple in institutional investment portfolios.

LIAN Group, an investment firm supporting companies in various industries including digital infrastructure, AI, cryptocurrency, and blockchain, has invested over $500 million since its establishment. Notably, LIAN Group has backed Cowa, the largest European blockchain infrastructure company powered by renewable energy.