Crypto asset managers, who currently oversee an estimated $50 billion, could potentially manage up to $650 billion within the next five years, according to a recent report by Bernstein Research. This forecasted increase, representing a potential 1,200% growth, hinges on two key factors: Public perception and regulatory changes.
The report, published on Tuesday, suggests that the sector's growth could be significantly catalyzed by the potential approval of Bitcoin spot Exchange Traded Funds (ETFs) by 2024. This regulatory milestone is seen as crucial for the expansion of the crypto asset management industry.
While regulatory acceptance remains a significant challenge for crypto assets, progress is being made in unexpected places. For instance, China, known for its previous blanket ban on cryptocurrencies, has shown signs of softening its stance. The Shanghai No. 2 Intermediate People's Court recently recognized Bitcoin as a unique digital currency. This recognition marks the second significant instance of crypto asset acknowledgment within the country this year following an earlier broadcast related to cryptocurrencies on China Central Television (CCTV), a state-owned channel.
Despite these developments not suggesting an immediate policy shift due to their relatively minor impact on the broader population, they represent positive steps for the crypto industry.
However, despite strong optimism about the future of crypto assets and potential high returns, recent market volatility makes investments in these assets risky. Missing out on this opportunity could set potential investors back by over five years according to some experts. However, it's crucial to note that the future growth of crypto asset funds is largely dependent on public sentiment and further regulatory changes.
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