Crypto Asset Management Market Trends and Share by 2031

The crypto asset management market is anticipated to expand at a CAGR of 21.8 % from 2023 to 2031. The wide adoption of crypto technology is fuelling the market.

Crypto Asset Management Market Analysis

The commercial development of cryptocurrencies has been expedited by the blockchain revolution. Blockchain may provide high-level security for cryptocurrencies and digital assets. Blockchain technology allows users to approve transactions without requesting permission from a centralized authority. There are a lot of uses for blockchain, such as money exchange, smart contracts, and voting. There are several blockchain application areas and use cases available in every sector. To put it briefly, blockchain is a peer-to-peer digital ledger that is decentralized and maintains transactional data. Cryptocurrencies, as the first use case for blockchain technology, have completely changed the way businesses handle digital assets. Financial organizations are looking into the possibility of using blockchain to transport and store cryptocurrencies and other digital assets via the Internet. The availability of blockchain technology is driving the growth of cryptocurrencies, which will indirectly increase demand for crypto asset management services. The growing use of cryptocurrency by businesses has forced financial stakeholders to implement crypto asset management systems. Thus, these factors mentioned above are essential for the crypto asset management market growth.

Crypto Asset Management Market Overview

• Crypto asset management involves the professional management of digital assets such as cryptocurrencies, tokens, and other blockchain-based assets on behalf of investors or clients. It encompasses various activities, including portfolio management, risk assessment, trading, custody, and reporting.
• Crypto asset managers design and manage investment portfolios comprising digital assets to achieve specific investment objectives, such as capital appreciation, income generation, or risk mitigation. They conduct research, analysis, and strategic asset allocation to optimize portfolio performance.
• Crypto asset managers assess the risks associated with investing in digital assets, including market volatility, regulatory uncertainty, cybersecurity risks, and liquidity constraints. They implement risk management strategies to mitigate potential losses and protect investors' capital.

Strategic Insights

Crypto Asset Management Market Drivers and Opportunities

Increasing Digitalization of Banking and Other Industries.

• The process of converting data or information into a digital format by using cutting-edge technology is known as digitization. In the banking industry, it is crucial to improve consumer security and offer better customer services. It facilitates digital payment services for banks and speeds up the debt collection process, both of which drive market expansion.
• Additionally, the capacity to reach a wide audience and create enduring relationships with customers to increase brand reliability is another way that digital technologies accelerate corporate growth.
• Additionally, technology aids companies in accomplishing a number of goals, including maximizing profits, cutting expenses, and providing high-quality customer service. Additionally, the market is growing faster due to the growing customer adoption of digital banking services, which enable users to acquire bank statements, execute financial transactions, and carry out other associated tasks with just a single click. Distributed ledger technology is also being used by a number of banks and financial institutions in China, Japan, and India to facilitate a range of banking products, including transfers, checking and savings accounts, withdrawals, deposits, loan management, and insurance products. Therefore, the crypto asset management market is expanding due to the increasing digitalization of banking and other industries.

Crypto Asset Management Market Report Segmentation Analysis

• Based on the solution, the custodian segment held the largest share of the crypto asset management market in 2023 and is predicted to remain in that position for the duration of the forecast. Custody is a critical component of crypto asset management, involving the safekeeping and management of digital assets on behalf of investors. Crypto asset managers may provide custody solutions, including hot wallets, cold storage, multi-signature wallets, and institutional-grade custody services to safeguard clients' assets.

Crypto Asset Management Market Share Analysis By Geography

The scope of the Crypto Asset Management Market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant Crypto Asset Management Market share. The region's significant economic development, growing population, and increasing focus on financial inclusion across diverse economies have contributed to this growth. Numerous reasons, including the emergence of new sectors and the expansion of the economy, are to blame for this. Furthermore, a high number of cloud crypto solution providers in the US and Canada are anticipated to open up profitable chances for the market.

Crypto Asset Management Market Report Scope

The "Crypto Asset Management Market Forecast" was carried out based on solutions and applications. In terms of technology, the market is segmented into custodians and wallets. Based on end users, the crypto asset management market is segmented into individuals and enterprises. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

Crypto Asset Management Market News and Recent Developments

Companies adopt inorganic and organic strategies such as mergers and acquisitions in the crypto asset management market. A few recent key market developments are listed below: 

• In April 2021, Coinbase partnered with Oobit to offer custodial services, a crypto wallet, and escrow for the users of Oobits' new product, which is known as Oobit Hunter.

[Source: Coinbase, Company Website]

• In October 2021, BitGo acquired Lumina, a provider of software solutions that offer digital asset dealers a financial platform that accelerates the mass adoption of digital assets by bridging the gap between traditional finance and crypto.

[Source: BitGo, Company Website]

Crypto Asset Management Market Report Coverage & Deliverables

The market report on “Crypto Asset Management Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas-

• Market size & forecast at global, regional, and country- levels for all the key market segments covered under the scope.
• Market dynamics such as drivers, restraints, and key opportunities.
• Key future trends.
• Detailed PEST & SWOT analysis
• A global and regional market analysis covering key Crypto Asset Management Market trends, key players, regulations, and recent market developments.
• Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
• Detailed company profiles.

REGIONAL FRAMEWORK

Crypto Asset Management Market Report Analysis

MARKET PLAYERS

Crypto Asset Management Market Report Scope