Share this article
Crypto Funds Could Manage as Much as $650B Within 5 Years, Bernstein Says
The crypto industry is expected to transition into a formal, regulated asset management industry from a ‘cottage industry’ with $50 billion of assets, the report said.
Updated Sep 26, 2023, 3:52 p.m. Published Sep 26, 2023, 7:28 a.m.
In this article
CORRECTION (Sept. 26, 10:41 UTC): Corrects headline, first paragraph to refer to funds under management.
The crypto fund management business could have assets of as much as $650 billion within five years as the expected launch of spot-based bitcoin exchange-traded funds (ETFs) in the U.S. is likely to bring more capital to the market, broker Bernstein said in a research report Monday.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The current "cottage industry" has about $50 billion of assets under management, equivalent to about 4% of the present size of the crypto market, analysts led by Gautam Chhugani wrote. At press time, the total crypto market capitalization was $1.08 trillion.
The research comes months after the likes of BlackRock filed for a spot-based ETF with the U.S. Securities and Exchange Commission (SEC). Early this month, the regulator delayed making a decision on all of the spot ETF applications until October. The crypto market is hopeful that an eventual launch of spot-based ETFs will unlock the floodgates to mainstream money.
Bernstein expects demand to be driven by "investment advisors, wealth and private banking integrated products and easier access to ETFs in direct broker accounts."
That would imply a 10% ETF share for bitcoin and ether market cap and a 5-6% share for crypto hedge funds, the note said.
"Crypto financial adoption follows hype cycles, and we expect a hockey stick adoption, with 2024 as the landmark regulatory year for approval of ETFs," the report added.
Read more: Crypto ETF Opportunity Doesn't Stop at Bitcoin, Extends Into Multiple Assets: Bernstein
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Zcash Floats Dynamic Fee Plan to Ensure Users Won’t Be Priced Out
ZEC zoomed 12% amid the fee discussion, beating gains across all major tokens.
What to know:
- A new proposal by Shielded Labs suggests a dynamic fee market for Zcash to address rising transaction costs and network congestion.
- The proposed system uses a median fee per action observed over the prior 50 blocks, with a priority lane for high-demand periods.
- The changes aim to maintain Zcash's privacy features while avoiding complex protocol redesigns.
Top Stories
