A recent survey conducted by Charles Schwab revealed that nearly 45% of U.S. investors plan to invest in Bitcoin and crypto through exchange-traded funds (ETFs) over the next year. This marks a significant increase from 38% the previous year, with crypto now ranking as the second-most desired asset class after U.S. equities, which saw 55% of respondents expressing interest.

The survey, which polled 2,200 individual investors aged 25 to 75 with at least $25,000 in investable assets, showed particularly strong interest in Bitcoin ETFs among millennials. For millennial ETF investors, cryptocurrency topped the list, with 62% planning to allocate funds toward Bitcoin ETFs, surpassing both equities and bonds. In contrast, only 15% of baby boomer investors indicated plans to invest in digital assets.

“Pretty stunning,” remarked Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, about the high level of interest in Bitcoin among investors. The growing demand for Bitcoin ETFs aligns with a broader trend seen in financial markets as more investors seek diversification opportunities beyond traditional asset classes such as stocks and bonds.

The popularity of Bitcoin ETFs has already made waves in the ETF market. In 2024 alone, cryptocurrency ETFs accounted for 13 of the 25 largest ETF launches by year-to-date inflows. BlackRock’s iShares Bitcoin Trust led the way, with nearly $21 billion in inflows, followed by Fidelity's Wise Origin Bitcoin Fund with close to $10 billion.

However, the U.S. market for Bitcoin ETFs continues to evolve, with many analysts predicting that the launch of options on spot Bitcoin ETFs could accelerate institutional adoption and unlock significant upside for investors. James Seyffart, an analyst at Bloomberg Intelligence, anticipates that options on Bitcoin ETFs may launch by early 2025.

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