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<![CDATA[<figure class="image"><img src="https://cimg.co/news/125551/331535/adobestock-508973466.jpg" srcset="https://cimg.co/news/125551/331535/responsive-images/adobestock-508973466___media_library_original_900_568.jpg 900w, https://cimg.co/news/125551/331535/responsive-images/adobestock-508973466___media_library_original_720_454.jpg 720w, https://cimg.co/news/125551/331535/responsive-images/adobestock-508973466___media_library_original_600_379.jpg 600w, https://cimg.co/news/125551/331535/responsive-images/adobestock-508973466___media_library_original_300_189.jpg 300w" width="900" class="content-img" alt=""><figcaption>Adobe Stock / Blue Planet Studio</figcaption></figure>The crypto asset management industry is set to experience exponential growth in the coming years, according to analysts at&nbsp;Bernstein Research.&nbsp;The analysts, led by&nbsp;Gautam Chhugani, predicted that crypto funds could reach a staggering $500 billion to $650 billion within the next five years, a significant leap from the current valuation of approximately $50 billion.In a&nbsp;<a href="https://www.barrons.com/articles/crypto-bitcoin-etf-sec-regulation-a3df431?siteid=yhoof2">note published</a>&nbsp;on Monday, the analysts cited several key factors driving this anticipated growth.&nbsp;One crucial catalyst is the potential approval of a spot&nbsp;<a href="https://cryptonews.com/coins/bitcoin/">Bitcoin (BTC)</a>&nbsp;exchange-traded fund (ETF).&nbsp;Last month, the US Court of Appeals for the District of Columbia Circuit&nbsp;<a href="https://cryptonews.com/news/grayscale-crypto-asset-management-firm-wins-lawsuit-against-sec.htm">ruled in favor of Grayscale</a>, ordering the SEC to set aside its earlier rejection of Grayscale&rsquo;s application and reopen the review process.The court ruled that there was no justification for the SEC to allow Bitcoin futures-based ETFs but deny spot Bitcoin ETFs.The SEC has until mid-October to contest the ruling, coinciding with its decision on whether to approve or postpone applications from other fund companies seeking to launch their own Bitcoin products.&nbsp;<h2 id="crypto-funds-could-be-available-by-2024">Crypto Funds Could Be Available By 2024</h2>Should the SEC cease resistance, Bitcoin funds could enter the market as early as next year.&nbsp;The Bernstein team expects ETFs to capture roughly 10% of the market capitalizations of Bitcoin and Ether, the second-largest cryptocurrency.<blockquote>"Crypto financial adoption follows hype cycles, and we expect a hockey stick adoption, with 2024 as the landmark regulatory year for approval of ETFs."</blockquote>In addition to Grayscale, prominent financial institutions such as&nbsp;BlackRock,&nbsp;Fidelity,&nbsp;WisdomTree, and&nbsp;Invesco&nbsp;have applied to launch Bitcoin ETFs.&nbsp;Some fund companies are also exploring products that hold spot&nbsp;<a href="https://cryptonews.com/coins/ethereum/">Ethereum (ETH)</a>&nbsp;or Ethereum-linked futures.Furthermore, industry giants like&nbsp;PayPal Holdings&nbsp;and&nbsp;Visa&nbsp;have either launched their own tokens or announced partnerships to strengthen their involvement in the crypto space.As reported,&nbsp;<a href="https://cryptonews.com/news/global-payment-firm-paypal-launches-crypto-stablecoin-how-does-it-work.htm">PayPal has announced</a>&nbsp;that it is rolling out its PYUSD stablecoin soon.&nbsp;The dollar-pegged asset is issued by&nbsp;Paxos, a blockchain infrastructure firm that used to issue&nbsp;<a href="https://cryptonews.com/coins/busd/">Binance USD (BUSD)</a>&nbsp;stablecoin.Meanwhile, Visa has&nbsp;<a href="https://cryptonews.com/news/visa-completes-off-chain-gas-payments-test-using-visa-cards.htm">recently completed</a>&nbsp;initial tests that allow users to pay their on-chain gas fees directly in fiat money through Visa card payments.<h2 id="regulatory-hurdles-continue-to-slow-crypto-adoption">Regulatory Hurdles Continue to Slow Crypto Adoption</h2>However, regulatory hurdles continue to impede broader institutional adoption.&nbsp;SEC Chair&nbsp;Gary Gensler, despite the agency's courtroom setbacks, maintains that the crypto industry is plagued by fraud and noncompliance with securities laws.&nbsp;During a conference earlier this month, he claimed that crypto&nbsp;<a href="https://cryptonews.com/news/sec-chair-gensler-crypto-industry-plagued-by-misconduct-legal-challenges.htm">has had a destructive impact</a>&nbsp;on millions of investors who have suffered losses.&nbsp;He even argued that the crypto market could potentially hurt the broader financial system.<blockquote>"It's an area that can hurt investors, but it can also hurt the broader economy because it can hurt investor confidence, and finance is ultimately built on trust."</blockquote>Despite the absence of comprehensive legislation, Bernstein analysts believe that the wave of enforcement actions is coming to an end.&nbsp;"The brunt of the regulatory backlash is currently behind us, and the Coinbase case will provide further clarity," they said.&nbsp;
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Crypto Asset Management Industry Could Reach $650B in Five Years, Up From $50B Today: Report

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