Overview
Top convictions
- Bitcoin is maturing into a distinct, investable asset class with more institutional participation, depth, and lower volatility
- Crypto-staked ETFs and tokenised funds will redefine investor access, delivering yield and on-chain exposure
- 2026 will see more integration, with traditional finance and digital assets combining to create a more connected global market
Digital assets reached an inflection point in 2025. Institutional participation accelerated, driven by clearer regulatory frameworks, improved access channels, and a growing recognition of Bitcoin’s distinctive role in diversified portfolios. Volatility is still a feature of the asset class, yet each wave of participation and infrastructure growth continues to temper Bitcoin’s sharpest swings. The road ahead in 2026 points to a deeper, more stable market underpinned by institutional discipline and further innovation on the products available to investors.
Bitcoin: An evolving macro asset
After a strong rally in early 2025, Bitcoin fell more than 20 per cent in the aftermath of a tariff policy-driven sell-off in October that triggered a wave of liquidation of leveraged positions. Well over a trillion dollars has been wiped off crypto market valuations in the weeks since, grabbing the headlines.
But behind those big numbers, the move on Bitcoin itself was both less damaging and relatively modest in a historical context. The market is deeper than it was. Institutional participation is growing, ranging from corporate treasuries and private banks to sovereign wealth funds and advisers. The market’s capitalisation now exceeds USD $2 trillion, with spot Bitcoin ETFs emerging as a key access point.
The relevance of Bitcoin’s core characteristics – its scarcity, neutrality, and independence from sovereign control – has also grown. In a world marked by geopolitical tension and currency debasement fears, Bitcoin’s non-sovereign, fixed-supply structure offers an alternative store of value. With no earnings or cash flows, price dynamics mirror global liquidity and sentiment, making it both a reflection of macro trends and, for some, a hedge against political instability.
The next phase of Bitcoin’s evolution will focus on greater utility, moving beyond passive holding and speculation to roles in collateralisation, lending, and derivatives. The October correction underscored how quickly 24/7 markets can unwind and reinforces the importance of institutional-grade risk management and discipline.
Access for all: ETFs as the bridge
Fidelity International’s 2025 investor studies[1] showed that in Europe, 25 per cent of retail investors already hold digital assets and 22 per cent plan to increase allocations within a year. In Asia-Pacific, 23 per cent hold them, and more than half intend to add exposure.
The advent of spot crypto ETFs have helped drive that process: since US approval in early 2024, crypto ETF-held assets have grown to more than $170bn[2]. Most of that has been in Bitcoin, but as understanding of digital assets deepens and the ecosystem diversifies, investors are looking further afield. Ethereum and Solana, for example, power decentralised applications and smart contracts, addressing different use cases within the broader blockchain landscape.
The next round of innovation should come in crypto-staked ETFs, which combine yield generation with accessibility. These products offer exposure to “staking rewards”, which give returns to investors in exchange for locking up their tokens to participate in the network’s consensus mechanism, approximately 2-3 per cent for Ethereum and 6-8 per cent for Solana. [3]
Tokenised funds: The next frontier
Tokenised funds offer a range of investor types the opportunity to hold digital representations of traditional investment funds on a blockchain. We see the potential for exponential growth ahead, with tokenised money market funds already topping $8.5bn, for example.[4]
There are challenges for 2026. The current models replicate existing funds digitally rather than reimagining them for a world of 24/7 trading and instant settlement. The market will need to shift from this ‘digital twin’ structure to ‘digital native’ funds to unlock the market’s full potential.
Global frameworks for tokenisation remain fragmented, but regulators in Singapore, Hong Kong, Luxembourg, and the United Kingdom are advancing clearer guidance to support industry growth. Progress in stablecoin regulation will be equally important, providing the foundation for digital cash infrastructure.
The path forward
Digital assets are a maturing ecosystem, one defined by greater institutional confidence, product innovation, and regulatory evolution. The conversation has shifted from ‘what if’ to ‘how’: how to embed digital assets within the mainstream investment toolkit with discipline, transparency, and purpose. That should draw more interest and more capital in 2026.
[1] The European study was conducted between 22 May and 9 June 2025, with the sample consisted of 5500 investors aged 18+. The APAC study was conducted between 15-28 May 2025, with a sample of 5025 investors aged 18+.
[2] Bloomberg, as of 10 November 2025
[3] Stakingrewards.com, as of 10 November 2025
[4] https://rwa.xyz, as of 1 November 2025
