Global ETF Market Could Reach $35 Trillion by 2035

The global ETF market is projected to reach $35 trillion by 2035, a substantial increase from its current $13 trillion. This prediction has been made by Eric Balchunas, who is a Senior ETF Analyst for Binance. The growth is expected to be driven by factors such as low costs, intra-day liquidity, tax efficiency, and flexibility of ETFs.

The forecast is based on a conservative 10% compound annual growth rate (CAGR), which is lower than the 17% and 25% rates seen in the past two decades. These funds are traded on public exchanges and generally track a particular crypto. Like other similar funds, crypto ETFs are listed on regular stock exchanges, allowing investors to hold them in their standard brokerage accounts, offering a convenient way to invest in crypto.

Furthermore, the market’s growth could also include crypto and asset tokenization. Asset tokenization is a growing topic, but it is not anticipated to cause significant disruption in the ETF market in the near future. However, with over ten years until 2035, there is potential for institutions to complement ETFs, enhancing their functionality and contributing to the global growth of $35 trillion.

In conclusion, the global ETF market is expected to experience significant growth in the coming years, driven by various factors such as low costs and flexibility. This growth could also include crypto and asset tokenization, with the potential for institutions to complement ETFs, further enhancing their functionality and contributing to the projected $35 trillion value by 2035.

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