Cryptocurrency funds that hold Bitcoin (BTC), Ethereum (ETH), and other digital assets could increase 10-fold within five years, according to an analysis by Bernstein Research.
Bernstein forecasts that the cryptocurrency asset management industry will hold $500 billion U.S. of funds by 2028, up from $50 billion U.S. today.
The bullish forecast comes ahead of the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the U.S., which would be the first of its kind in the American market.
Grayscale Investments is awaiting a decision by mid-October from the U.S. Securities and Exchange Commission (SEC) on a spot Bitcoin ETF.
Approval of the Grayscale fund is expected to pave the way for other crypto ETFs in the U.S.
In its analysis, Bernstein Research expects ETFs to get a 10% share of the market capitalizations of Bitcoin and Ethereum.
In addition to Grayscale, BlackRock (BLK), Fidelity, WisdomTree (WT), Invesco (IVZ), and others have applied to launch spot Bitcoin ETFs in the U.S.
Bernstein Research says it expects cryptocurrency ETFs to be approved by the SEC in coming months, opening a lucrative new market for digital coins and tokens.
Bitcoin’s price is up 58% year-to-date and currently trading at $26,200 U.S.
