The SEC's shift to "generic listing standards" for crypto ETFs removes the bespoke, lengthy approval process for each fund. This mirrors a historical rule change in traditional finance that led to a 4X increase in ETF launches, signaling an imminent explosion of diverse crypto products.

As Bitcoin matures, its risk-return profile is changing. The era of doubling in value every couple of years may be over. Instead, it could transition into a high-performing asset that reliably generates 15-25% annualized returns, outperforming traditional assets but no longer offering the explosive, "get rich quick" upside of its early days.

Publicly traded companies holding digital assets like Ethereum (FGNX) or Bitcoin (MicroStrategy) serve a specific purpose: they offer a bridge for hedge funds, asset managers, and family offices whose mandates prohibit direct crypto ownership but permit holding equities.

For moderate-risk, ultra-high-net-worth clients, Goldman Sachs advocates a surprisingly high 27% portfolio allocation to alternatives. The main challenge is implementation, so the firm uses proprietary "commitment planners" to help clients methodically invest capital annually, ensuring diversification across vintage years, strategies, and managers.

While painful for retail investors, significant market downturns serve a crucial function by purging speculative excess and redirecting capital toward higher-quality assets. This consolidation allows for a more sustainable market structure, with wealth built first in Bitcoin before diversifying into riskier assets.

Contrary to a front-loaded boom, traditional ETF launches show that year-two inflows typically surpass year one. This is because large institutions require long due diligence periods before investing and early buyers tend to add to their positions over time, a pattern crypto ETFs are expected to follow.

The last decade of crypto focused on moving assets like Bitcoin on-chain. The next, more significant mega-trend will be the migration of entire companies and their real-world revenue streams onto blockchains, involving both crypto-native firms and traditional giants like BlackRock and Stripe.

Unlike assets like commodities or private markets where institutions pioneer adoption, cryptocurrencies saw retail investors lead the charge. Institutions are only now slowly beginning to explore allocations, reversing the historical trend of top-down financial innovation.

TradFi investors, who often lack specific crypto knowledge, will favor broad index-based ETFs. This will channel passive capital disproportionately into the largest market-cap assets, creating a reflexive loop that concentrates value at the top, much like the 'Magnificent Seven' phenomenon in US equities.