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October 8, 2025Cryptopolitan logoCryptopolitan

Institutional capital now dominates crypto

Hong Kim and Elliot Andrews stated that institutional investors are replacing retail traders in the crypto market’s dominance, as they spoke at the Token49 event in ￰0￱ cited the rise of regulated investments, such as spot Bitcoin ETFs, which have attracted over $50 billion in inflows since their ￰1￱ Chief Technology Officer and co-founder of Bitwise said the Bitcoin investor base has shifted from short-term retail speculation to sustained institutional ￰2￱ noted that the first year of Bitcoin ETFs saw about $30 billion of inflows, and he believes the momentum will ￰3￱ says the launch of the Bitcoin ETFs was the ‘IPO moment’ for Bitcoin While speaking at the Token49 event in Singapore, Hong Kim, CTO and co-founder of Bitwise, noted that the launch of spot Bitcoin ETFs marked what he described as ‘Bitcoin’s IPO moment’.

He added that public companies, asset managers, and family offices took the stage and now dominate trading flows, which retail traders once ￰4￱ believes the new phase marks the maturity of the market and will create a sustainable demand that is less reactive to short-term price ￰5￱ data shows that the ￰6￱ Bitcoin ETFs now hold a total net assets of $167.37 billion, which is roughly 6.78% of the total Bitcoin Market cap, and cumulative net inflows of $61.24 ￰7￱ says the growth has been fueled by the growing presence of institutional investors, including traditional finance investors who are supported by favorable custody and compliance ￰8￱ ETFs, on the other hand, have also recorded notable inflows, hitting all-time highs in ￰9￱ spot ETFs currently hold $30.86 billion in total net assets, representing approximately 5.67% of the Ethereum market ￰10￱ fund also has cumulative net inflows of $15.02 billion since its launch.

BlackRock’s iShare Ethereum Trust leads with a 3.33% share that is close to $18.14 billion in net assets, followed by Grayscale’s Ethereum Trust, with a 0.88% share representing $4.78 billion in net ￰11￱ BTC, the Fidelity Wise Origin Bitcoin Fund (FBTC) holds a 1.04% share, representing $25.21 billion in net assets, followed by Grayscale’s Bitcoin Trust (GBTC), which holds a 0.88% share, representing $21.48 billion in net assets as of ￰12￱ says the custody question has largely been solved, citing regulated providers such as Coinase, Anchorage, and ￰13￱ also pointed out the recent clarification from the Securities and Exchange Commission (SEC) confirming that state-chartered trusts now qualify as ￰14￱ Digital CEO says clients want risk-adjusted performance According to Elliot Andrews, CEO of Aspen Digital, family offices and wealthy clients view digital assets as a long-term investment ￰15￱ noted that the days of chasing hundred times returns are over, and now clients are primarily interested in consistent and risk-adjusted ￰16￱ believes crypto forms part of a diversified portfolio, noting that the political and regulatory conditions in the ￰17￱ abroad have improved investor ￰18￱ Co-Founder Sergey Nazarov echoed the same remarks in March, noting that F und tokenization by the world’s largest asset managers, such as BlackRock and Fidelity International, is driving the next stage of digital asset adoption by the entire financial ￰19￱ Kim noted that both retail and institutional investors are viewing Bitcoin as a form of protection against currency debasement.

Currently, both the House of Representatives and the Senate remain divided over the following federal funding ￰20￱ Republican-controlled House seeks a clean resolution, and Senate Democrats push for policy conditions, creating ￰21￱ stalemate has fueled Bitcoin’s position as a hedge against the potential weakening of the U. S. dollar, driving Bitcoin’s price to a new all-time high of $126,198.07 on October ￰22￱ you're reading this, you’re already ￰23￱ there with our newsletter .

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