Crypto Asset Management Market

Growing need to secure cryptocurrency assets to drive market growth

An increasing number of companies are using bitcoin and other digital assets for investment purposes. As institutional interest in cryptocurrencies rises, organizations are increasingly investing in cryptocurrencies, resulting in the need to protect digital assets. Whether an organization has taken on exposure to digital assets, its ability to protect the private keys is critical. The cryptocurrency wallet holds the cryptographic keys needed to send, receive and claim ownership of a token or cryptocurrency on behalf of an owner. Digital assets require protection, especially considering future access needs or liquidity demands.

The growth of the crypto-asset ecosystem and the massive adoption of crypto-assets by institutions and private individuals has enabled new operators to launch crypto asset-management services, which allow those players to access and use the crypto assets and safely store and use their funds.

Increase in investment among the cryptocurrency technology by the individual as it offers several benefits, which include offering hassle-free currency transaction service, reducing the brokerage fees & middle man commission, and improving the security of business owner’s financial details drives the growth of the crypto asset management market globally. In addition, availability of high-speed internet connectivity has been helping business to exchange the cryptocurrency immediately and securely through the crypt asset management platform, which drives the growth of the market revenue.

Furthermore, crypto asset management technology allows merchant to transfer the cross-border payment and lowers the transaction charges, interest rate, and currency exchange fees. These factors positively impact the adopting cryptocurrency among the businesses and individuals, which drives the growth of market globally.

The Global Crypto Asset Management Market Industry is witnessing a notable increase in institutional adoption, as more financial institutions recognize the potential of cryptocurrencies as an asset class. In 2024, the market is valued at approximately 1.74 USD Billion, driven by the entry of hedge funds, pension funds, and family offices into the crypto space. This trend suggests a shift in perception, where cryptocurrencies are no longer viewed solely as speculative assets but as viable investment options. Institutional players are likely to bring significant capital inflows, enhancing market liquidity and stability, thereby fostering further growth in the industry.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American crypto asset management market is anticipated to expand at a significant CAGR during the study period, accounting for USD 0.388 billion in 2021. This is attributed to number of factors such as penetration of new industries and improvement in economy. The introduction and early adoption of the solution are driving the market opportunities in the region. Also, the region has several prominent players offering dedicated solutions across the industry vertical.

In addition, presence of large number of cloud crypto solution vendors across the U.S. and Canada is expected to provide lucrative opportunities for the market. In June 2020, BitPay, the blockchain payments provider, launched the BitPay Card, the first Mastercard Prepaid card for crypto users in the United States.

Moreover, the major countries covered in the market report include the United States, Germany, Canada, France, the United Kingdom, Italy, Spain, India, Japan, Australia, China, South Korea, and Brazil.

Figure 3: Crypto Asset Management Market Share By Region 2022

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

The European crypto asset management market is the world's second-largest due to the increasing interest in cryptocurrencies and growing acceptance of cryptocurrency payments within the region. The rapidly growing banking and financial investment in the region are boosting the crypto asset management market. The region is also witnessing remarkable growth in blockchain application in the financial industry. This is expected to drive the adoption of crypto asset management solutions across European countries. Further, the German crypto asset management market held the largest market share, and the France crypto asset management market was the fastest-growing market in the European region.

The Asia Pacific crypto asset management market is expected to grow at the fastest rate of CAGR during the forecast period owing to wide presence of large number of crypto mining enterprises, which are turning toward hosted crypto asset management solutions to efficiently manage their business processes, particularly in developing countries such as China, India, and Singapore. The increasing digitalization, online transaction, boost in the economy among others are the factors further contributing to the growth of the market in the region.

Rapid advancements in the network infrastructure, cloud computing, economic growth, and stable geopolitical system have provided a platform for the growth of solution providers in the region. The presence and use of digital currency significantly influence the financial system in the Asia Pacific markets. The growth of cryptocurrencies has attracted many large financial institutions to achieve greater business agility in the banking systems. Cryptocurrency, which is powered by blockchain technology, allows institutional clients to conduct transactions and exchanges, thus trading more quickly. Digital currency does not need any third-party intervention owing to its decentralized networks.

Moreover, China’s crypto asset management market held the largest market share, and the Indian crypto asset management market was the fastest-growing market in the Asia-Pacific region.

The competitive landscape of the Crypto Asset Management Market is expected to gradually move towards fragmentation, owing to the increasing adoption of cryptocurrency across the globe. Also, the emergence of several small and medium-sized global players is expected to help the market grow. The existing market players are increasingly making new product launches or making several innovations in the market to boost their market presence.

BitGo Inc is an institutional digital asset financial services company that provides clients with security, custody, and liquidity solutions. Bitgo operates a security-as-a-service platform. The Company enables exchanges, marketplaces, and e-commerce players to facilitate secure and multi-party transactions. In May 2020, BitGo Inc introduced institutional trading services for cryptocurrencies through its new company BitGo Prime. The traditional trading platforms, including hedge funds, fiduciaries, asset managers, and fund managers, will support cryptocurrencies.