The European exchange-traded fund (ETF) market is poised to hit $1.5 trillion in the next two months should the current growth be sustained, Bloomberg reported.
The market is expected to hit $1.5 trillion in August, from $1.475 trillion currently. Investment management firm BlackRock Inc. believes $2 trillion by 2025 is conservative.
European exchange-traded products (ETPs) flows for the year have hit $108 billion, with a significant chunk going to offerings related to environmental, social, and governance (ESG) standards.
The European ETF market is also benefiting from products related to cryptocurrencies with over 30 exchange-traded offerings while the United States has yet to approve one.
ETFs focused on stock continue to dominate the market, after recently hitting $1 trillion with the region’s biggest fund tracking the S&P 500 having some $46 billion in assets.
BlackRock Product Strategy Head Brett Pybus believes growth is driven by the evolution of Europe’s wealth industry, bringing the growth faster than in the United States.