Alliance Bernstein , a prominent $646 billion asset manager, has predicted that the Bitcoin and crypto fund management industry is poised for remarkable growth, potentially reaching a staggering $650 billion within the next five years.
AB estimates that the current size of the crypto fund management sector stands at approximately $45-50 billion. However, the firm's analysts argue that this figure has the potential to swell to over $500 billion in assets by 2028. This transformation would signify a transition from what AB dubs a "cottage industry" to a fully formalized, regulated asset management sector.
According to AB, achieving this ambitious goal would necessitate Bitcoin ETFs capturing a 10% share of the total market capitalization of both Bitcoin and Ethereum, while liquid crypto hedge funds would account for 5-6%.