Europe’s ETF market could almost double in size by the end of the decade as the rise of retail and complementary regulatory reforms are expected to underpin the next phase of growth, according to predictions made by London-based consultancy PwC.
A newly published report by the firm – which interviewed 72 executives across Europe, the US, Canada and Asia-Pacific – noted 36% of European respondents expected assets in the region to reach at least $5.5trn by June 2030, while a further 29% forecast assets of $5trn or more.
Paving the way for growth is retail uptake of the wrapper. More than three-quarters of European respondents anticipate meaningful demand from retail investors over the next two to three years.
PwC said this is bolstered by the rise of savings plans and government policies across the continent to move money out of cash savings and into investment accounts.
For example, the European Commission unveiled plans in October for tax-advantaged investment accounts designed to encourage citizens to invest in stocks, bonds and funds rather than hold excess cash.
In addition, research from BlackRock and extraETF projected the number of monthly executions through savings plans could reach 53.7 million by 2030, up from 15.1 million in 2025.
On the product front, digital asset ETFs are now ranked among the most in-demand product categories globally, with 55% of European respondents saying they would launch a digital asset ETF if permitted, up from 38% a year earlier.
That growing appetite continues to meet regulatory caution in Europe. Marie Coady, PwC’s global ETF leader, said it would be “interesting” to see where the European Securities and Markets Authority (ESMA) lands on crypto and digital assets under the UCITS Eligible Assets Directive (EAD), a decision that could prove a watershed moment for the sector.
Tokenisation is viewed as a longer-term opportunity to enhance cross-border distribution and settlement efficiency, though PwC noted regulatory clarity will be critical before adoption can scale.
“From a European perspective, we need to ensure there is a fit-for-purpose regulatory framework that provides clarity and consistency as the market evolves, particularly given the innovation potential within the asset management industry,” Coady said.
This is particularly important as the International Organization of Securities Commissions (IOSCO) has warned that tokenisation could make it easier for complex or financial products lacking transparency to reach retail investors.
PwC also highlighted the importance of market infrastructure reform in supporting Europe’s ETF ambitions, citing initiatives such as the consolidated tape and proposals to improve cross-border market access.
