Exchange-traded fund investors are getting even more interested in cryptocurrency exposure — and the advent of things like bitcoin futures ETFsOne CEO believes that this could result in a surge of demand.

According to ETF Trends CEO Tom Lydon, “The stars align right now for demand crypto allocation in advisor community when we look at 30 year of declining interest rates and…what that does for your fixed-income allocation,” Lydon said to CNBC. “ETF Edge”This week.

He said that advisors are under pressure to buy a share due to inflation and increased demand for alternatives investments.

In a survey done by Bitwise Asset Management, and ETF Trends, eighty-one per cent of financial advisers stated that they were asked questions about cryptocurrency in 2020. That’s an increase of 76% from 2019. Survey results showed that 9.4% of advisors now allocate crypto in client portfolios, up from 6.3%.

With ProSharesAnd Valkyrie Funds’Lydon indicated that the new Bitcoin futures ETFs have already made waves and may be the key to unlocking billions in investor demand.

The whole market is a middle market, where financial advisors have about $20 trillion and don’t know the best way to solve it. It seems like the futures-based ETF could be this,” he stated. This is where the majority of demand will come from.

The U.S. ETF Market currently manages approximately $6.5 trillion of assets. ETF advisers as well as ETF providers have significant opportunities in crypto. There is currently a market of $2 trillion with over 200 million users.

Add to that bitcoin’s perceived hedging power against rising inflation — 25% of advisors saw it as an inflation hedge in the Bitwise/ETF Trends’ survey this year, up from just 9% last year — and countries such as El Salvador adopting it as currency, and the crypto craze is likely still in the early innings, Lydon said.

He stated that “there are many people who want bitcoin in one way or another and it does not seem to be slowing down anytime soon.”

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