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This research also provides information about the expected market share of ETFs and crypto hedge funds within the crypto ecosystem. This suggests that ETFs could capture as much as 10% of the market capitalization of BTC and ETH.
Broker firm Bernstein has said an interesting thing in a recent research report. Prediction That the crypto fund management business could potentially become a $50 billion industry in terms of revenue.
US Bitcoin ETF game-changer
Bernstein’s bold forecast is rooted in the anticipated launch of a spot-based Bitcoin (BTC) exchange-traded fund (ETF) in the United States, which is expected to attract substantial capital to the crypto market.
At the time of writing, the total capitalization of the entire crypto market is $1.08 trillion, making the potential increase of $50 billion in revenue a significant milestone. Anticipation for spot ETFs continues to grow in the crypto space, as major players such as blackrock inc (NYSE:BLK) has applied for Bitcoin ETF approval with the U.S. Securities and Exchange Commission (SEC).
However, the SEC recently delayed Its decision on all spot ETF applications by October has increased both speculation and hope within the crypto market. The potential approval of these ETFs is seen as a major catalyst that could open the door to mainstream capital.
Bernstein notes in his research that demand for crypto investments is likely to be driven by a variety of sources, including investment advisors, wealth and private banking integrated products, and easier access to ETFs through direct broker accounts. These three factors are expected to significantly increase the appeal of crypto assets among traditional investors.
Meanwhile, the crypto industry has come a long way since its inception. From its early days as a niche market, it has evolved into a significant player in the financial landscape.
According to analysts led by Gautam Chhugani, the industry is expected to transform from a “cottage industry” with $50 billion of managed assets to a “formal, regulated asset management industry” with $500–650 billion of assets over the next five years. This change is a sign of growing institutional interest and the maturity of the crypto market.
ETF Market Share and Crypto Hedge Fund
This research also provides information about the expected market share of ETFs and crypto hedge funds within the crypto ecosystem. This suggests that ETFs could capture as much as 10% of the market capitalization of BTC and Ethereum (ETH,
Meanwhile, crypto hedge funds are expected to secure 5-6% market share. These statistics underline the growing appetite for more diversified and regulated investment options in the crypto sector.
The report also acknowledges that crypto adoption often follows hype cycles, with periods of rapid growth punctuating the journey. According to Bernstein, the year 2024 is expected to be a historic regulatory year, especially in terms of ETF approvals.
This prediction is consistent with the assumption that regulatory clarity will be an important driver of institutional investment. As regulatory frameworks become more defined and investor protections increase, a hockey stick-like wave of adoption is expected to take shape.
Benjamin Godfrey is a blockchain enthusiast and journalist who loves writing about real-life applications of blockchain technology and innovations to promote general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies drives his contributions to well-known blockchain media and sites.
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