Bloomberg Intelligence report predicts increased crypto adoption, SOL and BTC growth

Bloomberg Intelligence report documents bitcoin and altcoin adoption, the crypto market, and the developments of monetary technology. The report highlights that institutional involvement and declining volatility of bitcoin is allowing investors to invest without the common pitfalls of traditional assets. As institutions become more involved in the crypto market, liquidity is being moved into the market, increasing from 33% in 2019 to 52% in 2021. Bloomberg states that investors who do not choose to partially-allocate may suffer the worst. 

ETFs to gain renewed market optimism

The report also states that regulations present themselves as the biggest catalyst against a spot bitcoin ETF by the end of 2023. If the prediction comes true, it is likely that tens of billions in assets would be added to the crypto market. This would precede regulatory approval of digital assets. 

Today, around 15 blockchains or crypto-themed equity ETFs are trading on U.S. exchanges, assets have reached US$ 1.9 billion. Bloomberg Intelligence predicts the assets and number of funds will increase in 2022 as SEC withholds approval of spot bitcoin ETFs. There are at least 107 crypto funds with 119 share classes listed on public exchanges worldwide, including ETFs, CEFs, mutual funds and trusts. These launches and fund growth signal fund issuers’ optimism and belief in the potential of the crypto space.

“The number of publicly listed cryptocurrency funds – mostly tracking Bitcoin and Ethereum – should sustain the rapid growth of the past two years through 2022 and into 2023 as more countries allow the launch of spot products and regulators get more comfortable with digital assets.” said James Seyffart, ETF Strategist at Bloomberg Intelligence. 

“In the US, regulatory concern is the top reason advisers haven't invested in crypto assets. We believe a Bitcoin ETF approval would alleviate these concerns. The SEC has regulated the crypto industry with enforcement rather than offering regulatory clarity thus far but the industry is likely to get significantly increased clarity over the coming years from Biden's crypto executive order and from SEC rule proposal expansions. All of which will cause the growth of crypto fund assets.”

Solana and bitcoin outlook  

The report also says that Solana is outpacing other so-called “Ethereum killers” and will lead to Solana securing one of the top five spots in terms of market cap as the crypto market matures. It also predicts bitcoin could rally then stabilize at 100x the price of one ounce of gold (around US$ 180,000).

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