Crypto Asset Management Market Research Report—Global Forecast till 2030

Crypto Asset Management Market Research Report: Information by Component (Solutions and Services), Deployment Mode (Cloud and On-Premises), Application Type (Web-Based and Mobile), End-User (Individual User and Enterprise), and Region (North America, Europe, Asia-Pacific, and Rest of the World) - Forecast to 2030

ID: MRFR/ICT/9246-HCR | 100 Pages | Published By Ankit Gupta on March 2023         

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Crypto Asset Management Market

The global Crypto asset management market was valued at USD 455.3 million in 2021 and is projected to reach USD 4.5 Billion by 2030, with a CAGR of 25.5% during the forecast period, 2022–2030.

Segmentation
By Component Solutions and Services
By Deployment Mode Cloud and On-Premises
By Application Type Web-Based and Mobile
End-User Individual User and Enterprise
Key Players
Companies Profiled   Coinbase Inc. (US)    Gemini Trust Company LLC. (US)    Crypto Finance AG (Germany)    Genesis Global Trading Inc. (US)    Bakkt Holdings Inc. (US)    BitGo Inc. (US)    ICONOMI Limited (UK)
Drivers
Market Driving Forces   Growing need to secure Cryptocurrency Assets    Advancements in blockchain technology    Increasing adoption of cryptocurrencies across industries
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Crypto Asset Management Market Overview


The global Crypto asset management market was valued at USD 455.3 million in 2021 and is projected to reach USD 4.5 Billion by 2030 with a CAGR of 25.5% during the forecast period, 2022–2030.


Global Crypto Asset Management Market, 2022–­2030 (USD Million)Source: MRFR Analysis


The process of administering electronic assets to provide capable service by utilizing a distributed electronic ledger network is known as crypto asset management. Crypto asset management platforms make it easier to manage all crypto wallet addresses in one platform, rather than relying on individual wallets for each type of cryptocurrency. The growing cryptocurrency market and the increasing use of cryptocurrencies as a form of payment are fueling growth in cryto asset management market. Cryptocurrencies are one of the more intriguing investment opportunities that have arisen in recent years. As the price of cryptocurrencies continues to climb, a growing set of institutional investors and wealth managers who never had exposure to cryptocurrencies are preparing to invest in them for the first time within the coming year. The increasing use of blockchain technology is accelerating the development of the crypto asset management market.


Increased interest in cryptocurrencies drives more and more people to invest in them. New cryptocurrency traders, who are not experts in cryptocurrencies, can find it difficult to enter the market. Many potential cryptocurrency traders lack the knowledge to trade effectively or monitor their investments. Here is where Crypto asset management platforms come in that enable users to consolidate diversified holdings in one place. Crypto asset management solutions help its users to manage all crypto assets in one place by leveraging improved portfolio-management tools. The emergence of crypto asset management platforms facilitates the participation of less-experienced investors in the cryptocurrency market.


The major factors that are expected to drive the growth of the crypto asset management market include high remittances in developing countries, a growing need for secure cryptocurrency assets, and increased applications of blockchain technology. The untapped potential in various regions for cryptocurrencies asset management, acceptance of cryptocurrencies across businesses, and opportunities in new investment amid the COVID-19 crisis create numerous opportunities for the players operating in the crypto asset management market. Security and privacy concerns,  lack of technical expertise, and regulatory framework are the main challenges in the global crypto asset management market.


Market Dynamics


Drivers

  • Growing need to secure Cryptocurrency Assets


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 in light of 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.


Restraints & Challenges

  • Lack of Regulatory Framework Across Regions


Cryptocurrency usage has increased in recent years in low-, middle-, and high-income nations. Virtual assets, like traditional financial assets, are susceptible to market manipulation and unpredictable price. Regulators all across the globe are learning how to deal with the new difficulties that digital currencies present. Cryptocurrency values have risen and fallen dramatically in recent years. Investors need clarification on the legal consequences of these new technologies and currencies as digital currencies become more popular. As bitcoin investment has grown in popularity, the legal requirements for intelligent investors have become increasingly vital to grasp. Because cryptocurrencies are not backed by a central body, they are decentralised, which may be both an advantage and a danger for investors. Because of the decentralised structure of cryptocurrency, there is a higher danger of fraud; also, investors who are scammed will not have the same legal redress as traditional fraud victims.


Opportunities

  • Growing Opportunities in Fast-Growing Economies


As private investors and public corporations understood the potential of digital currencies during the epidemic, bitcoin usage grew. In recent years, a slew of new cryptocurrencies have appeared, propelling the global crypto asset management business forward. The internet's growth and worldwide digitalization have provided a fertile ground for cryptocurrencies. Many individuals lost their jobs as a result of the global economic slump, and many began to invest in cryptocurrencies to supplement their income. Furthermore, new occupations have evolved in this arena, with some individuals pursuing careers as traders, technical analysts, and crypto influencers. The growing number of applications for cryptocurrencies, together with the rising price of Bitcoin, has prompted individual investors to invest in crypto assets, fueling the worldwide crypto asset management market's expansion.


Impact of COVID-19


The COVID-19 pandemic boosted the efficiency of the cryptocurrency market. The market capitalization of crypto assets has grown significantly in recent years despite large price swings. The cryptocurrency market capitalization increased threefold in May 2021 to an all-time high of USD 2.5 trillion. A rise in the value of crypto assets is associated with increased interest in stable coins and newer technologies. During the COVID-19 pandemic, digital money and FinTech apps have contributed to speeding up technological progress. The increased confusion and regulatory changes during COVID-19 affected all M&A activities, particularly for new transactions. The rise of crypto assets has also contributed to the acceleration of digitization and cloud adoption of crypto-asset management. While other commodities were suffering during the economic downturn, cryptocurrencies had become a safe investment. The emergence of crypto asset management enables institutions to deliver cost-effective crypto financial services, including crypto transactions, exchanges, live rate conversions, and other offerings that drive the global crypto asset management market during the pandemic.


Cumulative Growth Analysis


YoY Growth to Expand at a Strong Rate


As per MRFR, the crypto asset management market is expected to witness a staggering YOY growth during the projected period. The growing need for safeguarding cryptocurrency assets, the growth of venture capital investments in crypto assets, and advancements in blockchain technology are some of the factors supporting the global crypto asset management market growth.


Value Chain Analysis/Technology Analysis/Regulatory Implications


Blockchain public ledger technology could be a way to validate financial transactions, such as those for stocks and bonds, without a centralized authority.


The supply chain of the crypto asset management market involves custodian, wallet Management solutions providers, software/platform developers, system integrators, and end-users. 


Segment Overview


The global crypto asset management market has been segmented into component, deployment Mode, application type, application, end-user, and region/country.


Based on component, the crypto asset management market has been segmented into solutions and services. The solutions segment is anticipated to exhibit the larger market share during the projected period.


Based on deployment mode, the crypto asset management market has been classified into cloud and on-premises. The on-premises deployment segment is expected to account for the larger market share; however, the cloud-based deployment segment is expected to exhibit a faster CAGR rate during the projected period.


Based on application type, the crypto asset management market has been bifurcated into web-based and mobile. Web-based hold the larger market share within the global crypto asset management market and while the mobile based application is expected gain the highest CAGR during the forecast period.  


Based on end-user, the crypto asset management market has been segmented into individual user and enterprise.  Enterprise is further segmented into banking, financial services, and insurance, retail and eCommerce,  healthcare, travel and hospitality, others. The Retail and eCommerce segment is expected to register the fastest growth during the projected period.


Regional Analysis


The global crypto asset management market is expected to gain significant revenue from the various continents during the projected period. The geographic analysis of the crypto asset management market has been conducted for North America, Europe, Asia-Pacific, and Rest of the World. North America is classified into the US, Canada, and Mexico. Europe is divided into the UK, Germany, France, Italy, Spain and the Rest of Europe. Asia-Pacific is segmented into China, Japan, India, South Korea, Australia and the Rest of Asia-Pacific.


North America Leads the crypto asset management Market


North America holds the leading share in the crypto asset management market, primarily due to the increased cryptocurrency adoption in US and Canada. In addition, the adoption of advanced technologies such as blockchains across industries and the digitization of assets are expected to fuel the growth of the crypto asset management market in the region. The US dominated the North America crypto asset management market as it is the most developed country in terms of economy. Increasing acceptance of cryptocurrencies coupled with growing investments in cryptocurrencies fuel the growth of the North America crypto asset management market. Moreover, the presence of prominent vendors such as Coinbase, Inc. (US), Gemini Trust Company, LLC. (US), Genesis Global Trading, Inc. (US), Bakkt Holdings, Inc. (US), BitGo, Inc. (US), EXODUS MOVEMENT, INC. (US), Paxos Trust Company, LLC. (US), and Amberdata, Inc. (US) is also the primary growth factor of the region. Canada is the second-largest developed country in the region and is expected to exhibit the fastest growth during the projected period.


Europe Holds the Second Highest Share in the Market


Europe holds the second position in the crypto asset management market in terms of revenue. The UK, Germany, and France are the major growth engines of the market. The UK holds the leading share within the European crypto asset management market. Germany and France are also contributing significant revenue for the European market. Italy and Spain countries have shown increased adoption of Crypto asset management. Furthermore, increasing interest in cryptocurrencies, emerging fintech organizations, and growing acceptance of cryptocurrency payments are contributing to the growth of Europe crypto asset management market.


APAC is expected to be the Lucrative Region for the Market


Asia-Pacific is the third-largest market for the global crypto asset management market. However, the market is expected to grow with the fastest CAGR compared to other regions. This can be attributed to the growing institutional-grade, diversified crypto-investment opportunities and regional regulator engagement contributing to the Aisa Pacific crypto asset management market. Several western crypto asset management companies have expanded their geographic footprint across the region due to increasing demand for crypto asset management solutions coupled with favorable business policies. China, India, Japan, and Southeast Asian countries are the major contributors to the highest growth. India is likely to exhibit the fastest growth in the APAC region as the country is focusing on digital asset initiatives. Various Asian countries have pioneered cryptocurrency policies and are likely to play a key role in the future of the industry.


Competitive Analysis


The crypto asset management market is highly competitive with the presence of several leading vendors. However, some of these players have created goodwill within the global market by offering advanced features at affordable prices. Coinbase, Inc. (US), Gemini Trust Company, LLC. (US), Crypto Finance AG (Germany), Genesis Global Trading, Inc. (US), Bakkt Holdings, Inc. (US), BitGo, Inc. (US), ICONOMI Limited (UK) and BINANCE (UK) are the prominent players within the market with large client bases across the globe. Some of these major players have adopted organic and inorganic strategies such as mergers, acquisitions, partnerships, strategic alliances, and product launches to gain a competitive advantage. Moreover, some leading players are constantly focusing on technological advancements to offer advanced and upgraded features per the dynamic consumer needs. The vendors compete in terms of software types, deployment, after-sales services, among other factors. Technological advancements are mandatory for new entrants to compete against the leading giants within the market.


List of Key Companies Covered in this Report:-



  • Coinbase, Inc. (US)

  • Gemini Trust Company, LLC. (US)

  • Crypto Finance AG (Germany)

  • Genesis Global Trading, Inc. (US)

  • Bakkt Holdings, Inc. (US)

  • BitGo, Inc. (US)

  • Ledger SA (France)

  • METACO SA (Switzerland)

  • ICONOMI Limited (UK)

  • EXODUS MOVEMENT, INC. (US)

  • Xapo, Inc. (Switzerland)

  • Paxos Trust Company, LLC. (US)

  • Koine Money Ltd (England)

  • Amberdata, Inc. (US)

  • BINANCE (UK)

  • Tradeium Capital, LLC. (Germany)

  • Opus Labs CVBA (Belgium)

  • Kryptographe Inc (UK),

  • KOINLY (UK)


Key Developments in Global Crypto Asset Management Market:



  • On 21st July 2021, Gemini Trust Company, LLC., a US-based cryptocurrency exchange expanding its operations in Southeast Asia and established satellite offices across the region, including in Australia and Hong Kong, to strengthen its geographical presence in this region.

  • On 21st May 2020, Genesis Capital, a prominent New York-based cryptocurrency firm that offers its services to institutional investors, acquired London-based custodian Volt. This acquisition enables Genesis Capital to attract a broader array of institutional clients.


Report Overview


This study estimates revenue growth at the global, regional, and country levels and offers an overview of the latest developments in each of the sub-sectors from 2018 to 2028. For this analysis, MRFR segmented the crypto asset management market has based on component, deployment mode, application type, vertical, end-user and region/country.



  • Based on Component

    • Solutions

    • Services



  • Based on Deployment Mode

    • Cloud

    • On-Premises



  • Based on Application Type

    • Web-Based

    • Mobile

    • Based on End-User

    • Individual User

    • Enterprise



  • Banking, Financial Services, and Insurance

    • Retail and eCommerce

    • Healthcare

    • Travel and Hospitality

    • Others



  • Based on Region

    • North America

    • Europe

    • Asia-Pacific

    • Rest of the World




Intended Audience



  • Crypto asset management Solutions & Services Providers

  • Potential Investors

  • Regulatory & Government Bodies

  • Research & Consulting Firms

  • Upstream & Downstream Vendors

  • End Users

  • Others



Report Scope:

Report Attribute/Metric Details
  Market Size   USD 4.5 Billion
  CAGR   25.5%
  Base Year   2021
  Forecast Period   2022-2028
  Historical Data   2018&2019
  Forecast Units   Value USD million
  Report Coverage   
  Segments Covered   • By Component (Solutions and Services) • By Deployment (Cloud and On-Premises) • By Application Type (Web-Based, Mobile) • By End-User (Individual User and Enterprise (Banking, Financial Services, and Insurance, Retail and eCommerce, Healthcare, Travel and Hospitality, Others)
  Geographies Covered   • North America (US, Canada, and Mexico) • Europe (UK, Germany, France, Italy, Spain and Rest of Europe) • Asia-Pacific (China, Japan, India, South Korea, Australia, and Rest of Asia-Pacific) • Rest of the World
  Key Vendors   • Coinbase, Inc. (US) • Gemini Trust Company, LLC. (US) • Crypto Finance AG (Germany) • Genesis Global Trading, Inc. (US) • Bakkt Holdings, Inc. (US) • BitGo, Inc. (US) • Ledger SA (France) • METACO SA (Switzerland) • ICONOMI Limited (UK) • EXODUS MOVEMENT, INC. (US) • Xapo, Inc. (Switzerland) • Paxos Trust Company, LLC. (US)
  Key Market Opportunities   
  Key Market Drivers   • Drivers • Growing need to secure Cryptocurrency Assets • Advancements in blockchain technology • Opportunities • Increasing adoption of cryptocurrencies across industries • Growing opportunities in fast-growing economies • Growing Cloud-Based Deployments • Challenges • Security and privacy concerns • Impact of COVID-19 • Impact on the Crypto Asset Management Market • Impact on IT Expenditure • Impact on Digitalization • Impact on Market Players


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