The
global

Exchange-Traded
Fund
market
is
poised
for
a
meteoric
rise,
with
analysts
predicting
a
staggering
growth
by
2035.
This
translates
to
a
projected
asset
value
of
a
whopping
$35
trillion,
dwarfing
the
current
figure
of
$13
trillion.
Eric
Balchunas,
Senior
ETF
Analyst
for
Binance,
believes
this
surge
is
inevitable,
driven
by
the
inherent
appeal
of
ETFs
and
the
exciting
new
frontier
of
crypto-based
offerings.

Low
Costs,
High
Liquidity:
A
Recipe
For
Investor
Attraction

ETFs
have
long
been
a
darling
of
investors
due
to
their
inherent
advantages.
Unlike
actively
managed
funds
with
hefty
fees,
these
types
of
funds
boast
low
costs,
making
them
a
budget-friendly
option
for
investors
seeking
broad
market
exposure.

 

Additionally,
their
intra-day
liquidity
allows
for
easy
buying
and
selling
throughout
the
trading
day,
a
stark
contrast
to
the
less
flexible
structure
of
traditional
mutual
funds.
Tax
efficiency
and
the
ability
to
tailor
investment
strategies
through
diverse
offerings
further
solidify
their
position
as
a
go-to
investment
tool.

35
in
35:
We
predicting
ETFs
are
likely
to
reach
$35T
in
assets
globally
by
2035
(triple
from
$13T
today).
This
is
based
on
10%
CAGR
(past
decade
was
17%,
decade
bf
was
25%)
which
is
arguably
fairly
modest
(bc
mkt
returns
likely
less
great).
Their
low-costs,
intra-day
liq,
tax…

pic.twitter.com/g7Y8olmBZp

—
Eric
Balchunas
(@EricBalchunas)

June
14,
2024

Balchunas
emphasizes
these
core
strengths
as
a
key
driver
of
future
growth.
“ETFs
offer
a
compelling
combination,”
he
states.
Low
costs,
intra-day
liquidity,
tax
efficiency,
and
flexibility
will
continue
to
attract
investor
cash,
leading
to
a
snowball
effect
of
more
products,
innovative
designs,
and
a
growing
sales
force
promoting
them,
he
points
out.

Cryptocurrency
Takes
Center
Stage:
A
New
Frontier
For
ETFs

The
emergence
of
spot
crypto
exchange-traded
fund
is
a
game-changer
for
the
industry.
These
innovative
products
directly
track
the
price
of
specific
cryptocurrencies,
allowing
investors
to
gain
exposure
to
this
burgeoning
asset
class
without
the
complexities
of
managing
individual
crypto
holdings.

This
convenience
factor,
coupled
with
the
ability
to
hold
crypto
ETFs
in
traditional
brokerage
accounts,
is
proving
highly
attractive
to
investors
dipping
their
toes
into
the
crypto
market.

 

The
success
of
these
initial
offerings
paves
the
way
for
further
expansion.
The
article
predicts
that
more

cryptocurrencies,
like

Solana,
could
be
next
in
line
for
ETF
listings.
This
not
only
broadens
investor
options
but
also
lends
further
legitimacy
to
the
cryptocurrency
market
as
a
whole.

Tokenization
And
Long-Term
Potential

While
the
near
future
belongs
to
ETFs
and
crypto,
some
analysts
acknowledge
the
burgeoning
potential
of
asset
tokenization.
This
technology
involves
converting
traditional
assets
like
stocks
or
real
estate
into
digital
tokens
tradable
on
a

blockchain.

A
Bullish
Market
With
Room
For
Nuance

The
overall
outlook
for
the
ETF
market
is
undeniably
bullish.
The
confluence
of
low
costs,
investor-friendly
features,
and
the
inclusion
of
innovative
crypto
assets
paints
a
picture
of
a
dynamic
and
rapidly
growing
market.

Despite
some
nuances,
the
ETF
market’s
trajectory
appears
firmly
on
an
upward
climb.
With
its
focus
on
convenience,
affordability,
and
diversification,
ETFs
are
poised
to
be
a
dominant
force
in
the
investment
landscape
for
years
to
come.

 

Featured
image
from
Getty
Images,
chart
from
TradingView

Go to Source
Author: Christian Encila

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