- A recent survey shows that U.S. investors are adapting their strategies in response to economic uncertainty, with 75% planning to increase their ETF holdings.
- The approval of U.S. Bitcoin and Ethereum ETFs in 2024 has been instrumental in driving the adoption of digital assets among institutional investors.
Brown Brothers Harriman (BBH), a leading financial services firm specializing in accounting, administration, custody, and transfer solutions, has released its 2025 Global ETF Investor Survey, offering an in-depth analysis of the growing Exchange Traded Funds (ETF) space. The survey highlights investor sentiment, adoption trends, and key factors shaping the future of ETFs.
Notably, while investors are increasing their allocations to actively managed ETFs, they are also scaling back their exposure to other products. According to the survey, more than half of respondents (53%) plan to sell index-based ETFs as they shift their focus toward active ETFs.
Key Findings from the Survey
ETFs continue to gain traction, with 95% of surveyed investors planning to increase their ETF allocations in the next 12 months, a notable jump from 82% in 2024. This surge in adoption reinforces that ETFs are no longer just a passing trend but a core component of investment portfolios. Their versatility remains a major draw, offering investors diversified exposure across various asset classes.
Notably, ETFs are now evolving to encompass a broader range of strategies, including smart beta, actively managed funds, cryptocurrency, and alternative investments. The shift toward crypto-focused ETFs is particularly strong, with 75% of investors planning to increase their allocations in the next year. Investor interest in crypto-focused ETFs varies across regions, with Asia leading the charge at 80%, followed closely by the U.S. at 76%.
Beyond diversification, investors are using ETFs to manage risk, navigate market uncertainty, and drive long-term growth. Demand for buffered ETFs remains steady, with 29% of respondents planning to invest in them, just one point below last year’s figure. Fixed-income ETFs are also on the rise, with investor interest climbing to 29%, reflecting an upward trend from 2024.
As Europe’s ETF market celebrates its 25th anniversary, retail investor participation is accelerating, fueled by regulatory support that is driving broader adoption. With ETFs expanding beyond their passive origins, cost considerations are becoming less dominant, with only 30% of investors now ranking expense ratio as a top-three factor when selecting an ETF.
The growth of actively managed ETFs stands out, with net inflows reaching $374.3 billion over the past year. This momentum is set to continue, as an overwhelming 97% of surveyed investors plan to increase their exposure to active ETFs in the coming year.
The momentum behind ETFs isn’t slowing down anytime soon. Under Donald Trump’s leadership, the U.S. Securities and Exchange Commission (SEC) has adopted a more pro-crypto stance, paving the way for increased digital asset adoption. As CNF has reported, Several major asset managers, including Grayscale, Franklin Templeton, and VanEck, have already filed applications for a Solana ETF, while Bitwise Asset Management and Franklin Templeton have submitted proposals for spot XRP ETFs.
As ETF and crypto adoption continues to accelerate, the SEC Crypto task force is actively engaging with industry stakeholders and hosting roundtable discussions to explore further regulatory developments.
