crypto-asset-management-market-by-solution-custodian-and-664313

Crypto Asset Management Market by Solution, Custodian, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2020-2027 The crypto asset management market is expected to witness substantial growth during the forecast period (2020-2027). This growth is mainly attributed to the rising penetration of cryptocurrency, such as bitcoin, Ethereum, and Ripple, among others, as well as the growing adoption of blockchain technology in order to secure and facilitate digital transactions.

Crypto asset management is defined as a form of digital asset or cryptocurrency management that is carried out by an individual or a group of individuals. This activity includes monitoring, buying, trading, and storing of digital assets, in order to maximize the returns generated from those assets. Crypto asset managers create portfolios of digital assets in order to diversify the risk and optimize the portfolio’s potential for profit.

The crypto asset management market has been segmented on the basis of solution, custodian, and industry vertical. By solution, the market has been sub-segmented into portfolio management, risk & compliance management, and analytics & reporting. Portfolio management solutions are used for operations such as portfolio optimization, rebalancing, trading, and reporting of funds. These solutions are mostly used by large and institutional investors in order to mitigate risk and optimize returns. Moreover, risk & compliance management solutions are used for cyber security, monitoring of market trends, and ensuring compliance with government regulations. In terms of custodian, the market is divided into non-custodial and custodial custodians. Non-custodial custodians provide the users with the ability to store, trade, and spend cryptocurrencies without compromising their privacy and personal data. On the other hand, custodial custodians provide the users with the same capabilities, but the users' funds are held in a secure environment.

On the basis of industry vertical, the crypto asset management market is segmented into banking, financial services & insurance (BFSI), healthcare, government & public sector, education, media & entertainment, manufacturing, retail, and others (including legal, agriculture, and logistics). BFSI is the most opportunistic segment, owing to the increasing demand for secure and transparent digital payment technologies, as well as the rise in the adoption of crypto asset management services in financial institutions around the world.

Geographically, North America is the largest market for crypto asset management, followed by Europe. The North American region has established itself as a regional leader in terms of the adoption of blockchain solutions. Moreover, the region also benefits from the presence of numerous established players in the market, such as Coinbase, BitGo, and Goldman Sachs, among others. In Europe, the presence of supportive government policies, such as the implementation of cryptocurrency regulations, is propelling the growth of the market.

Some of the major players operating in the crypto asset management market include Coinbase, Gemini Trust Company, BitGo, Ledger, Cipher Trace, Goldman Sachs, Athena Invest, Bakkt, Coinbase Custody, and Fidelity Digital Assets, among others. In order to gain a competitive edge, key players are focusing on strategies such as collaborations, product innovation, and partnerships. For instance, in June 2020, Coinbase announced the launch of its crypto asset management business, thereby enabling institutional and high net worth customers to track and trade their exposures across the most liquid crypto assets, such as Bitcoin and Ethereum.

Overall, the crypto asset management market is expected witness strong growth during the forecast period due to the increasing adoption of cryptocurrency, as well as the increasing focus on solutions and products related to crypto asset management. Moreover, the growing demand for secure, transparent, and decentralized digital payment solutions, as well as supportive government policies and regulations, are expected to further fuel the growth of the market during the forecast period.