Cryptocurrency ETFs Set to Overtake Precious Metals ETFs in 2025, TrustStrategy Report Reveals

The rapid rise of cryptocurrency exchange-traded funds (ETFs) is poised to eclipse traditional precious metals ETFs by the end of 2025, according to a new analysis by TrustStrategy. The report forecasts that Bitcoin, Ethereum, and other digital asset ETFs will collectively surpass the $250 billion mark, overtaking gold and silver ETFs in North America for the first time.

Key Findings from TrustStrategy’s Analysis

1. Crypto ETF Assets Expected to Reach $250B+ by Q4 2025

   • Current crypto ETF assets: ~$80B (as of mid-2024)

   • Projected growth rate: 65% YoY

2. Precious Metals ETFs Stagnating at ~$230B

   • Gold ETFs dominate but see minimal inflows (~2% annual growth)

   • Silver ETF demand declining due to industrial shifts

3. Bitcoin ETFs Lead the Charge

   • BlackRock, Fidelity, and Grayscale Bitcoin ETFs account for 60% of inflows

   • Spot Ethereum ETFs expected to drive next wave of growth

Why Crypto ETFs Are Outperforming

TrustStrategy identifies three major factors fueling this shift:

✔ Institutional Adoption – Pension funds, endowments, and hedge funds increasingly allocate to crypto ETFs.
✔ Regulatory Clarity – SEC approvals remove legal uncertainty for traditional investors.
✔ Generational Wealth Transfer – Younger investors favor digital assets over gold as an inflation hedge.

Market Impact: What to Expect

• Bitcoin Price Implications
  → Increased ETF demand could push BTC toward $150K by 2026
  → Supply squeeze from ETFs buying ~10x daily mined BTC

• Gold Market Consequences
  → Outflows from gold ETFs may accelerate
  → Mining stocks could underperform crypto equities

• Broader Financial System Effects
  → More 401(k) plans add crypto ETF options
  → Traditional brokers expand digital asset offerings

Regional ETF Growth Breakdown

Note: North America expected to see the most dramatic shift.

Challenges and Risks

Despite bullish projections, TrustStrategy warns of potential hurdles:
⚠ Macroeconomic Downturns – Could temporarily slow ETF inflows
⚠ Regulatory Pushback – Some lawmakers still oppose crypto ETFs
⚠ Custody Risks – Large-scale hacks remain a concern

Industry Expert Reactions

• BlackRock CEO Larry Fink: "Crypto ETFs are the gateway to tokenization."

• ARK Invest’s Cathie Wood: "This is just the beginning—AI and blockchain will redefine asset management."

• Gold Advocate Peter Schiff: "Investors are making a historic mistake abandoning gold."

What’s Next? TrustStrategy’s 2026 Outlook

• Multi-Asset Crypto ETFs (e.g., AI + blockchain thematic funds)

• Options and Leveraged ETF Products

• Potential Commodity-Crypto Hybrid ETFs

Conclusion: A New Era for Asset Allocation

"The lines between digital and traditional finance are blurring," said TrustStrategy’s Head of Research. "ETF flows don’t lie—we’re witnessing a once-in-a-generation portfolio shift."