The current “cottage industry” has about $50 billion in assets under management, equivalent to about 4% of the current cryptocurrency market size, write analysts led by Gautam Chhugani. Currently, the total capitalization of the cryptocurrency market is $1.08 trillion.
The capitalization study comes months after companies like BlackRock filed for a spot ETF with the U.S. Securities and Exchange Commission (SEC). Earlier this month, the regulator delayed a decision on all spot ETF applications until October. The cryptocurrency market is hoping that the possible launch of spot ETFs will open the floodgates to a massive flow of money. Established brokerage analysts expect demand to be driven by investment advisers, integrated wealth and private banking products, and easier access to ETFs in direct brokerage accounts. This would mean a 10% ETF allocation for Bitcoin (BTC) and Ethereum (ETH) market caps and a 5-6% allocation for cryptocurrency hedge funds, the note said.
Financial adoption of cryptocurrencies follows hype cycles, with 2024 set to be a landmark regulatory year for ETF approvals, the report added. We are waiting for the approval of the SEC, gentlemen traders, and we are eating the whole “cutlet”.