Crypto Asset Managers Seek $650B Growth as Regulatory Approval Looms

Published: published a report on Tuesday with a forecast that crypto asset managers, who currently oversee approximately $50 billion, could manage up to $650 billion in the next five years. This potential 1,200% growth is dependent on two key factors: public perception and regulatory changes.

The report suggests that the sector’s expansion could be significantly catalyzed by the approval of Bitcoin spot Exchange Traded Funds (ETFs) by 2024, which is seen as a crucial milestone for the crypto asset management industry.

Despite a generally negative attitude towards cryptocurrency, progress is being made in unexpected places. For example, China, which has previously held a blanket ban on cryptocurrencies, has recently shown signs of softening their stance. The Shanghai No. 2 Intermediate People’s Court recently recognized Bitcoin as a unique digital currency, and China Central Television (CCTV), a state-owned channel, broadcasted a related program earlier this year.

These developments, while not suggesting an immediate policy shift due to their limited impact on the population, are positive steps for the crypto industry.

Despite the potential for high returns, investments in these assets are still highly risky. Experts warn that missing out on this opportunity could set potential investors back by five years. The future growth of crypto asset funds is largely dependent on public sentiment and further regulatory changes.

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