Crypto asset management firms will grow this section of the cryptocurrency market to over $9 billion from less than 1 billion in 2020 by 2030, according to new research by Allied Market Research.
“The global crypto asset management market size was valued at $0.67 billion in 2020, and is projected to reach $9.36 billion by 2030, growing at a CAGR (compounded annual growth rate) of 30.2% from 2021 to 2030.”
Cryptocurrency asset management firms such as Grayscale and exchanges allow investors to hold and interact with various types of crypto assets in a single platform as well as providing different investment options to the users.
Primary Driving Factor
The firm said in the report that the growth will occur at a 30.2% compounded annual growth rate (CAGR) and will primarily be driven by the changes in the financial markets as a result of the Covid-19 pandemic.
“The covid-19 pandemic has accelerated the adoption of cloud-based crypto asset management solutions among the banks and fintech institutions to secure their system and to provide customers with scalable, resilient, and agile crypto services.”
Additionally, growth will be boosted by increased crypto adoption due to the expected higher technological reach around the world that will increase digitalization in the global financial sector.
This will, in turn, open the way for cloud-based crypto asset management firms to provide more affordable and easier access to crypto-based products and services to both individuals and organizations.
Therefore, while the on-premise crypto services are expected to retain dominance for the projected period, cloud-based services will record the highest growth. The decade will also see the implementation of blockchain technology expand from the financial sector to others such as BFSI, healthcare, and IT.
North America to Retain Dominance
The forecast expects North America to retain its dominance in the crypto market as it did in 2020. This is due to its superior economic status and thriving cryptocurrency industry, including cloud-based solutions service providers.
However, the Asia Pacific region will offer stiff competition from its giant crypto mining industry that is already turning to cloud-based solutions for enterprise management. China, India, and Singapore are mentioned in the report as the primary competitors.
In Europe, the UK is expected to lead in the race, followed by Germany, France, Italy, Spain, the Netherlands, and the rest of Europe. Latin America, the Middle East, and Africa will also see an increase in crypto adoption.
According to the report, the companies that will lead in the projected growth include Bakkt, BitGo, Coinbase, Crypto Finance AG, Gemini, ICONOMI, and Paxos.
“These players have adopted various strategies to increase their market penetration and strengthen their position in the crypto asset management industry.”