Share page with AddThis


Crypto ETPs forecast to exceed $120bn AuM by 2028

ETF blocksGrowing institutional demand and a change in US policy could see assets under management in crypto ETPs surpass $120 billion within the next six years, according to a recently published report.

Bloomberg Intelligence’s (BI’s) 2022 Crypto Outlook states that a key catalyst will be approval from the US Securities and Exchanges Commission for a spot bitcoin ETF.

Should this happen by the end of 2023, the regulatory clarity it would provide would likely lead to tens of billions in assets added to the crypto funds space, states the report.

BI estimates that there are at least 107 crypto funds with 119 share classes listed on public exchanges globally. But while this shows that fund issuers believe there is massive potential in the asset class, the absence of an approved spot option in the US, the world’s biggest ETF market, this potential will not be fully realised.

James Seyffart, ETF strategist at BI said: “The number of publicly listed cryptocurrency funds – mostly tracking bitcoin and ethereum – should sustain the rapid growth of the past two years through 2022 and into 2023 as more countries allow the launch of spot products and regulators get more comfortable with digital assets.

“In the US, regulatory concern is the top reason advisors haven't invested in crypto assets. We believe a Bitcoin ETF approval would alleviate these concerns,” he added.

©2022 fundsTech

Most read features

Roundtable: The digital transformation opportunity

The funds industry is looking at adopting new types of technology, from automation to ESG reporting, blockchain and tokenisation. A FundsTech roundtable in March explored how these will revolutionise the sector.

Tokenisation: The incredible potential of tokenisation

Tokenisation offers a new generation of investors access to a wide range of asset classes. But a lack of analysts is one reason why the market may not be ready for the possibilities, finds Nicholas Pratt.

Regulation: Panel calls for simplicity in ESG reporting

The industry accepts the need for more rigour in ESG fund reporting, but the work will be pointless if investors don’t understand the end result. Nicholas Pratt reports.

Cryptocurrencies: Crypto funds face long wait for regulatory approval

While crypto currencies forge onwards, access for investors who prefer to invest through regulated vehicles remains muted. A wait-and-see stance by regulators lies at the centre of this, finds Nicholas Pratt.

Managing the impact of ESG reporting

A rise in ESG reporting requirements is impacting asset managers in every conceivable way. The solution, discovers Nicholas Pratt, is to use all of this newly found data to form a closer relationship with the next generation of investors.

Sponsored Profiles

The importance of trust when building successful client-vendor teams

Petra Roche and Anna Kanior-FlorekFundTech speaks to Metrosoft’s Petra Roche and Anna Kanior-Florek about cross-organisational relationships and why mutual trust...

The digitally connected Global Transfer Agent

Anand Ramachandran, Vice President, Global Head of Solutions, Richard Clarkson, Head of Solutions, Funds and Swapnil Joshi, Senior Strategy Manager from Oracle Financial Services Global...

Data consolidation takes centre stage in asset management M&A

MergersConsolidation between asset management firms is overwhelmingly expected to increase. Operational challenges remain thanks to legacy systems. But in a recent...

Are you being microserved?

As asset managers grapple with new digital technology, FundsTech talks to Calastone’s Adam Belding about the importance of software architecture and the benefits...