THE EVOLUTION OF CRYPTO PRODUCTS -From the speculation -Haka bet to strategic possession
In Crypto today for counselors, DOVILE SILENSKYTE From WisDomtree it is discussing the growth of crypto products and how they have developed in a strategic investment allocation.
Then, then, Kim klemballa From CoinDesk indices answer questions about digital assets and trends to ask an expert.
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THE EVOLUTION OF CRYPTO PRODUCTS -From the speculation -Haka bet to strategic possession
Crypto is no longer the “wild west” of the investment. When removed as speculations -just betting, digital assets grow old in a believable and more strategic component of institutional portfolios.
Figure 1: Global Assets Under Management (AUM) in Physical Crypto ETPS
Source: Bloomberg, WisDomtree. 01 April 2025. History performance is not an indication of future performance and any investment may decrease in value.
By the end of Q1 2025, global properties under Management (AUM) in physical exchange of Bitcoin (ETP) exchange products were more than $ 100 billion. That figure implies a deep, sustainable convincing from institutional investors, which means it is no longer the only kingdom of the early adopted. Today, the highest wealth funds, pension schemes and asset managers provide the scale on the scale.
After more than 15 years of development, many boom-and-bust cycles and a global user base exceeded Half a billion peopleCrypto has proven that this is no course. Bitcoin has emerged as a crypto macro asset-difficult to obtain, decentralized and increasingly positioned as a major hold within various multi-asset portfolios.
But here’s the catch-the crypto allocations are still underneath.
Despite the growing adoption, most crypto portfolios remain narrow concentrated in Bitcoin. That’s a legacy mindset and one start. Investors will not allocate their entire equity exposure to Apple, or rely on a single bond to represent the fixed income. However that is certainly how many more are treated in the crypto.
The difference is a foundation for traditional finances. It spreads risk, improves resilience and unlocks accessing the wider setting sets. The same principle holds in digital ownership.
The universe of cryptocurrency has expanded more than Bitcoin, emerging in a dynamic ecosystem of unique technologies, using cases and investment thesis.
Smart contract platforms such as Ethereum, Solana and Cardano build a decentralized infrastructure for everyone from decent financial (defi) to invisible tokens (NFT), each with unique trade-offs in scalability, security and network design. Meanwhile, Polkadot is advancing interoperability, which enables seamless communication throughout the cadena-a building’s main block for a multi-chain future.
Beyond the blockchains of this Layer 1, we see the rapid change in:
- Teal-World Asset (RWA) Tokenization where traditional finances meets blockchain metals
- Defi protocols that empowers decentralized lending, trading and liquidity solutions
- Web3 infrastructure, from decentralized identity to storage, forming the spine of a more open Internet
Each of these sectors brings its own risk profile of risk, adoption curve and regulation. Treating them as interchangeable, or worse, ignoring them altogether, is like reducing global equity investment in a single tech stock. Not only is it obsolete – it’s strategically ineffective.
The difference in crypto is not about rising risk, but rather, taking the whole spectrum of change. In a multi-chain, multi-thesis world, not fulfilling diversity means leaving the opportunity on the table.
The case for crypto indices
The fact is that most investors do not have time, tool or technical expertise to maintain 24/7 crypto markets. Crypto indices offer a strong solution for those who seek extensive, systematic exposure without having to dive into tokenomics, upgrading a validator or network upgrading.
Just as equity investors rely on benchmarks such as the S&P 500 or MSCI indices, sari -variety crypto indices allow to access the market simply -with size, structure and simplicity. No prediction, no token-picking, no need for constant rebalance. Just clean, based on the rules based on the emerging crypto views.
– Dovile Silenskyte, Director of Digital Assets Research, WisDomtree
Ask an expert
Q. Why is Crypto change important?
A. Among more than 20,000 listed cryptocurrencies, Bitcoin now costs more than 65% of the total market capitalization. The difference is the key to institutional investors to manage volatility and get greater opportunities. Indices can be a great way of monitoring asset class performance, while products such as funds exchanged exchanges (ETFs) and separately managed accounts (SMAs) can provide exposure to many cryptocurrencies at once, which potentially help to spread risk.
Q. What trends do you see in digital ownership?
A. Institution investors enter the market, pushing digital assets from a suitable investment in a major type of property. Ey-parthenon and coinbase performed a Survey With more than 350 institutional investors worldwide in January 2025. Of investors surveyed, 87% plans to increase general crypto dedication in 2025, covering various options such as products exchanged exchanges (ETPs), investment in digital asset companies, stablecoins, futures and investigations. Each survey, 55% holds the crypto spot through ETPs, with 69% of those planning to have a planning area to do so using registered vehicles.
Q. Is there a broad crypto -based benchmark?
A. There are wide benchmarks in digital assets. In CoinDesk indices, we launched the CoinDesk 20 Index In January 2024, to capture the performance of leading digital assets and acting as a gateway to measure, trade and invest in the ongoing expansion of the crypto asset class. Designed with liquidity and mental diversification, CoinDesk 20 has developed an unprecedented $ 14.5 billion in total trading volume and is available in twenty investment vehicles worldwide. CoinDesk indices also have CoinDesk 80 Index, CoinDesk 100 Index (CoinDesk 20 + CoinDesk 80) and CoinDesk Memecoin Indexamong others.
– Kim klemballa, head of marketing, coindesk indices
