Policy, innovation, and market dynamics drive institutional cryptocurrency M&A
Bitcoin accounts for over 60% of the total cryptocurrency market capitalization, is worth far more than all other digital assets combined, and can arguably be a more powerful source of blockchain fuel than any other cryptocurrency in existence.
The financial services industry is at a crossroads, with an indisputable trend of financial services moving into crypto. Digital assets built on the blockchain are transforming the financial ecosystem and shaping its future. Digital assets are no longer living on the fringe of the global financial system — they are becoming central to its future and to the movement of value through the capital markets and payments rails
Regulatory action by the Securities and Exchange Commission (SEC) in 2024 allowed the inclusion of bitcoin and ether in spot commodity-based ETFs. This action, accompanied by the Commodities Futures Trading Commission (CFTC) clarifying the regulatory framework for options on these ETFs, paved the way for institutional investors to enter the market. In Chairman Atkins’ first major policy shift, the SEC inaugurated “Project Crypto” and approved in-kind redemptions for spot BTC and ETH ETFs, allowing authorized participants to create and redeem ETF shares directly in BTC or ETH. In coordination with “Project Crypto,” the CFTC Acting Chair Pham has initiated “Crypto Sprint,” seeking to enable “immediate trading of digital assets” on CFTC-registered exchanges. Also, the SEC’s Division of Corporation Finance stated that liquid staking activities covered in its statement issued yesterday do not involve the offer and sales of securities.
The Trump administration heralded a new era for the growth of digital assets, reinforced in a comprehensive policy report released last week by the White House Working Group on Digital Asset Markets, with guidelines and recommendations covering stablecoins, digital asset market structure (including custody, token issuance and trading infrastructure), expanded CFTC regulatory authority and safe harbors for developers.
Policy and capital markets activities are aligning. Crypto is no longer on the sidelines, it’s becoming core infrastructure for the future of finance. The changes we’ve witnessed so far this year will undoubtedly lead to a robust finish for 2025.