As of late Monday, the total market capitalization of the global cryptocurrency market was $2.69 trillion, according to CoinMarketCap data. More than $1.8 trillion of that figure is attributable to just two digital assets – bitcoin and ethereum.
The dominant perches of bitcoin and ethereum are well-documented and that pair of digital currencies, along with others, could be driving forces for potential exponential growth in the broader cryptocurrency market this year – growth that could benefit equity-based exchange traded funds including the Invesco Alerian Galaxy Crypto Economy ETF (SATO) and the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC).
Both Invesco ETFs feature the Grayscale Bitcoin Trust ETF (GBTC) as their largest holding, confirming the funds have clear leverage to bitcoin’s price action and thus, possible expansion of the broader cryptocurrency universe’s market value.
Crypto Market Could Get Swell Rapidly
While 2024 is barely more than three months old, some experts believe rapid expansion is in store for the broader cryptocurrency space. Should those forecasts prove accurate, ETFs such as BLKC and SATO could benefit.
Consider comments from Ripple CEO Brad Garlinghouse in a recent interview with Ryan Browne of CNBC. The boss of Ripple, which is a blockchain startup and the sixth-largest cryptocurrency by market cap, believes the digital currency space can swell to a combined market capitalization of $5 trillion by the end of this year. That implies significant upside from the aforementioned $2.69 trillion figure.
“I’ve been around this industry for a long time, and I’ve seen these trends come and go,” Garlinghouse told CNBC. “I’m very optimistic. I think the macro trends, the big picture things like the ETFs, they’re driving for the first time real institutional money.”
Indeed, spot bitcoin ETFs such as the Invesco Galaxy Bitcoin ETF (BTCO) are having profound effects on bitcoin supply. The success of those products is also stirring hope that U.S. regulators will eventually approve comparable products pertaining to ethereum. Should that happen, the audience of ethereum investors would likely expand, possibly contributing to upside for that digital currency’s market cap. A more sanguine regulatory environment in the U.S. could also be a boon for crypto adoption and prices.
“One of the things actually I’ll say on the macro tailwinds for the industry: I think we will get more clarity in the United States,” Garlinghouse told CNBC. “The The U.S. is still the largest economy in the world, and it’s unfortunately been one of the more hostile crypto markets. And I think that’s going to start to change, also.”
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