Crypto exchange-traded products (ETPs) have moved from niche to mainstream — and the data explain why advisors should pay attention. ETPs now hold about 1.47 million bitcoin (roughly 7% of bitcoin’s 21 million supply), making them the largest single holder class. Major issuers leading that concentration include BlackRock’s iShares IBIT (~749,000 BTC), Fidelity’s FBTC (~201,000) and Grayscale’s GBTC (~185,000). Institutional allocations are likely to keep rising as market structure and policy evolve.
ETF adoption and flows
A Trackinsight Global ETF Survey of more than 600 professional investors overseeing over $1 trillion in ETF assets found that more than half plan to increase crypto ETF allocations in 2025. U.S.-listed crypto ETFs have climbed in importance: cryptocurrency ETFs ranked 8th in net inflows across segments in the past year. Collectively, crypto ETPs have topped $200 billion in assets while gold ETPs remain near $400 billion — suggesting investors are adding crypto alongside, not necessarily in place of, traditional hedges.
Monthly flows highlight the shift. In August, ether-linked products attracted about $4.27 billion (roughly 88% of the month’s net inflows), driven largely by U.S. funds. At the category level, bitcoin products recorded net outflows of about $169.1 million, while Solana and XRP products pulled in $383.4 million and $279.7 million, respectively. By geography, the Americas led with $4.92 billion in inflows, Europe showed about $108 million in outflows and APAC posted roughly $70.4 million in inflows.
New token ETFs and the regulatory picture
Spot filings for Solana and XRP are pending at the U.S. SEC; approvals are not guaranteed even as legal clarity for Ripple and a more constructive tone in Washington improve odds. Meanwhile, Canada and Europe already offer spot ETPs for a wider set of tokens. Since 2024, global net inflows to XRP and Solana ETPs have totaled about $2.02 billion and $1.35 billion, respectively.
Operationally, recent policy steps have firmed the U.S. market: the SEC’s acceptance of in-kind creations/redemptions for spot bitcoin and ether funds should support tighter spreads, and exchange proposals for generic listing standards could streamline future approvals. The U.S. now accounts for roughly 94% of USD-denominated ETF activity, reinforcing its role in price discovery and capital formation for crypto.
What advisors should take away
The growth of crypto ETPs opens clearer, regulated routes for client exposure, but it brings specific risks: concentration in a few large holders, potentially volatile flows, pending approvals for new spot listings and evolving regulation. Advisors should evaluate custody arrangements, fund structure, fee profiles and client risk tolerance before increasing allocations. For clients seeking diversification, crypto ETPs can complement traditional hedges — but due diligence and an eye on liquidity and concentration remain essential.
Source: CoinDesk. Read the original coverage for full details.