Crypto’s Impact on Retirement Savings: Bitcoin ETFs on the Horizon

Traditional Finance Embraces Crypto

Geoff Kendrick, a Standard Chartered analyst, predicts that traditional fund managers will soon invest in cryptocurrencies. The recent launch of spot Bitcoin Exchange-traded funds (ETFs) in the US and the strong performance of Bitcoin and Ethereum have sparked interest in crypto-based investments.

401k Market Poised to Shift

Kendrick believes that retirement fund managers will allocate funds to Bitcoin ETFs in the coming months. The positive sentiment surrounding ETFs and their massive inflows suggest a bright future for these products. He anticipates $50 billion to $100 billion of net inflows by the end of the year.

Ethereum ETFs on the Way

Kendrick also expects the 401k market to invest in spot Ether ETFs once approved by the SEC. He predicts a net inflow of $20 billion to $35 billion into these ETFs in 2024.

Big Institutions Enter Crypto

Kendrick sees the entry of traditional finance into the crypto space as a positive sign. He believes that crypto-based ETFs are helping to normalize the crypto market and expose big investors to this emerging asset class.