Crypto Asset Management Market

Cryptocurrency Adoption to Grow as Blockchain Goes Mainstream

The Crypto Asset Management Market is valued at USD 1.5  Bn in 2026 and is projected to reach USD 7.1  Bn,  growing at a CAGR of 25% by 2033. Proliferation of the blockchain technology has increased the value of digital currency, as compared to its previous scenario. Digital assets are expected to rise on the back of surging blockchain adoption, underpinned by its security and transparency features. The decentralized nature of blockchain digital ledger allows it to encrypt and store transactional details across the entire peer-to-peer network which is transparent to all blocks (members) in the chain. Being the first blockchain use case, cryptocurrency has dramatically transformed the way digital assets are being pursued by businesses. Moreover, with KYC (Know Your Customer) and AML (Anti Money Laundering) regulations surrounding cryptocurrency transactions, financial institutions have been exploring ways to leverage blockchain to store crypto assets on the internet ecosystem. In this backdrop, the adoption of cryptocurrencies is expected to witness an upswell, in turn contributing to the growth of the global crypto asset management market.

Crypto Assets as Asset class - A Transition That is Influencing Crypto Asset Management

Over time, world has steadily moved from a perception in which crypto assets were only imaginary to a position where they are considered as a fully-fledged, real-time asset class. Certain types of crypto assets reflect high returns which can further increase by pursuing opportunities in the Decentralized Finance (DeFI) ecosystem that uses smart contracts based on blockchain through eligible assets, as a decentralized blockchain ledger can facilitate quick payments at less cost as compared to traditional systems. This aspect coupled with inherent volatility feature of crypto assets positions them as an “asset class” from a portfolio management standpoint. Additionally, some crypto assets also provide an inflation hedge, which can be considered as a powerful facet in this era of exceptionally wobbling monetary policies worldwide. This transition is expected to boost the market for crypto asset management in the coming years.

BFSI Sector to Emerge as a Lucrative Growth Propeller in the Global Crypto Asset Management Market

Surging adoption of blockchain in the banking sector is expected to trigger significant investments in cryptocurrency. For instance, in 2019, Uruguay based bank service provider - Bantotal - collaborated with Bitex, a cryptocurrency Bitcoin exchange to enable cross border transactions on the Bitcoin blockchain.  Likewise, in November 2019 a range of varied services was launched by SEBA bank to facilitate integration of crypto assets in traditional banking. These services covered asset management, trading, custody, as well as financing. Its e-banking and wallet app can enable customers convert their investments in the traditional format into cryptocurrencies. Similarly, asset management and cryptocurrency investment bank -CCC (Clipper Coin Capital) - was launched in Hong Kong that aims to provide financial research, asset management and investment banking services to casino cryptocurrency market. Such initiatives point towards efforts taken by companies in the BFSI sector to expand into cryptocurrency, in turn favoring the growth of the global crypto asset management market worldwide.

Asia Pacific to Emerge as the Go-To-Market for Crypto Asset Management

Emerging economies in the Asia Pacific region have shown higher inclination towards use of crypto assets on the back of growing adoption of cryptocurrencies. Albeit an initial ban on use of cryptocurrencies across developing economies such as India, the present scenario seems favorable as government bodies have regulated the use of cryptocurrencies. For instance, in India, the present scenario reflects that RBI has lifted ban on certain cryptocurrencies in a bid to promote the underlying technologies such as distributed ledgers and blockchain and established a functional digital currency framework. Such factors coupled with rapid advancements in IT infrastructure, stable geopolitical scenario and pervasiveness of cloud computing are expected to favor adoption of digital currencies via decentralized networks, consequently fuelling the global crypto asset management market’s growth across Asian countries.

Global Crypto Asset Management Market: Competitive Scenario

Companies in the crypto asset management market are focusing on strategic alliances and new product launches in a bid to enhance their position in the crypto asset domain. For instance, in January 2020, IU (Intelligence Unit) and MVIS (MV Index Solutions) entered into a strategic alliance with NRI (Nomura Research Institute Ltd.) to launch a crypto asset index - the NRI/IU - for financial institutions. With platforms provided by MV Index Solutions, this index offers investment solutions to financial institutions in Japan alongside global investors. On the other hand, Crypto Finance AG, in April 2020, was able to successfully raise CHF 14 Mn of new funding, which is expected to support company’s growth amidst COVID 19 challenges.

Major players in the global crypto asset management market include BitGo Inc., Metaco SA, Coinbase Inc., Crypto Finance AG, Gemini Trust Company LLC., Ledger SA and Kryptographe Inc.

Key Players

• BlackRock
• Fidelity Digital Assets
• Grayscale Investments
• Coinbase, Inc.
• Gemini Trust Company, LLC
• BitGo, Inc.
• Galaxy Digital Holdings
• Anchorage Digital
• Crypto Finance AG
• CoinShares
• Paxos Trust Company, LLC
• Bakkt, LLC
• Nexo
• Ledger SA
• Pantera Capital

Global Crypto Asset Management Market

By Solution

• Custodian Solution
• Wallet Management

By Deployment

• Cloud
• On-premise

By Application

• Web-based
• Mobile

By Operating System

• iOS
• Android

By End Use

• Individual
• Enterprise
• Institutions
• Retail & E-commerce
• Healthcare
• Travel & Hospitality

Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa