Crypto Assets industry reaches a new milestone, institutional investors' interest surges

Recently, the Crypto Assets market has welcomed a series of positive news. The global financial market has generally risen due to the easing of relations between China and the United States. Although the price of Bitcoin has seen some adjustments, the altcoin market is performing actively, with Ethereum leading the rise and breaking through the $2700 level. The DeFi sector has risen across the board, sparking discussions about the return of the altcoin season.

In addition to the improvement of the macro environment, new positive trends have emerged within the industry. On May 13, a large crypto assets trading platform will be included in the S&P 500 index, replacing the soon-to-be-acquired Discover Financial Services. This change will take effect before trading begins on May 19, marking an important breakthrough for the crypto industry in the mainstream financial market.

At the same time, global businesses and institutions are increasingly interested in the Crypto Assets sector. Recently, China and the United States reached a tariff truce agreement in Geneva, temporarily easing the long-standing trade tensions. The agreement includes a 90-day suspension of the 24% reciprocal tariffs, retains a 10% base tax rate, and establishes a third-country consultation mechanism. This news has driven a significant rise in the US stock market, with S&P 500 futures rising over 3% and the Nasdaq index increasing by 4.35%.

Despite Bitcoin's price falling from $106,000 to $100,700, the Crypto Assets market as a whole rebounded quickly. Major altcoins such as Ethereum, Solana, and BNB all recorded decent rises. With the tariff dispute coming to a temporary pause, the market is gradually returning to normal, and the price bottoms of various coins are showing an upward trend.

Good news is also coming from the industry. New Hampshire has passed a strategic Bitcoin reserve bill, authorizing the state treasurer to purchase Bitcoin or digital assets with a market value exceeding $500 billion, with a holding limit of 5% of the total reserve funds. This brings new potential demand for Bitcoin. In addition, the new SEC chair has clearly stated that establishing a reasonable regulatory framework for Crypto Assets markets will be a priority during their term, continuing to send positive signals. There are also reports that a large asset management company is in discussions with the SEC regarding an Ethereum staking proposal, further boosting market confidence.

Against this backdrop, Crypto Assets companies have entered a golden period of development. A leading Crypto Assets trading platform has successfully entered the S&P 500 index, becoming the first Crypto company to be included in the index, achieving further success in the mainstreaming process of the industry. Founded in 2012, the company has undergone 13 years of development and has become an important window for traditional finance to observe the encryption industry.

In 2021, this trading platform went public on NASDAQ, with strong stock performance, reaching a high of $429.54 on its first day of trading. Since then, the company's stock price has been closely linked to the trends of the crypto assets market, falling to $33.26 during the low period in 2023, but then regaining momentum. This year, the company set a new record by successfully being included in the S&P 500 index. Following this news, the company's stock price surged 24% on the first day, closing at $256.90.

This milestone event may not directly drive the market up in the short term, but its symbolic significance is substantial. It represents mainstream market recognition of the encryption industry, laying the foundation for the integration of encryption and traditional finance, and opening a new chapter in the mainstreaming of the industry. In the long run, this will not only bring more passive investment demand to companies but also enhance the overall awareness of the encryption industry, with the potential to attract more traditional investors.

At the same time, this breakthrough has further fueled the listing frenzy of crypto enterprises. Since last year, several crypto companies have been actively advancing their IPO plans, with a certain well-known exchange even restructuring its company framework to meet regulatory requirements.

In Hong Kong, businesses and institutions are also actively laying out plans in the encryption field, especially in the RWA (Real World Assets) sector. Following the launch of the Ensemble project by the Hong Kong Monetary Authority to carry out a tokenization sandbox pilot, the RWA field in Hong Kong is accelerating its development once again.

Large technology companies are taking the lead and acting frequently. A blockchain technology company under a certain e-commerce giant has begun to form a team related to RWA and is collaborating with a licensed virtual bank to explore cross-border payment solutions based on stablecoins. Another tech giant has already implemented a practical case, having completed the first domestic RWA project involving 200 million RMB, based on photovoltaic physical assets last year, and continues to collaborate with multiple parties to promote the practical application of RWA.

In addition to large tech companies, exchanges and financial institutions are also actively positioning themselves. A local blockchain company in Hong Kong has reached intentions for RWA on-chain cooperation with over 200 institutions, involving traditional financial institutions, asset management companies, tech enterprises, and various Web3 native projects.

With the improvement of technological infrastructure, supporting services have also followed suit. Recently, several securities companies announced the launch of Crypto Assets related services, including tokenized securities business and Crypto Assets deposit and withdrawal services.

Overall, whether it is the U.S. encryption companies rushing for IPOs or Hong Kong companies promoting RWA, both demonstrate a positive attitude from institutions towards the crypto industry. However, due to regional differences, the participation methods vary slightly. The U.S. market tends to be more aggressive, with institutions directly buying ETFs, companies borrowing to buy coins, and large payment companies entering with stablecoins. The Hong Kong market is relatively cautious, steadily advancing under a strict compliance framework, focusing more on business-oriented development and extending through sectors.

At the same time, the trends in the mainland market have also attracted widespread attention, particularly regarding the possibility of capital opening up. Although rumors about the mainland launching a Bitcoin ETF may be premature, they also reflect the market's strong anticipation for the opening of capital in the mainland.

It is foreseeable that as Crypto Assets gradually move towards the mainstream, more and more businesses and institutions will venture into this field. Funds, attention, and resources will continue to flow into the market, and this wave of institutional investors' "FOMO" (Fear of Missing Out) is just beginning.