The digital landscape is experiencing a significant transformation according to Chris Nekvinda, PhD of the Cannon Financial Institute. Throughout the history of cryptocurrency, most investors, along with the majority of financial advisors, have viewed crypto as a speculative niche.Today with Bitcoin above $100,000, crypto is rapidly entering the financial mainstream.
Crypto Confidence: On the Rise
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As recently as October of 2024, the Pew Research Center reported that the majority of Americans were not confident in the safety and reliability of cryptocurrency. Despite this lack of confidence, crypto ownership by U. S. adults continues to climb dramatically.
In 2022 the Federal Reserve of St. Louis reported that only 4.3% of American adults held these assets. In early 2025, the National Cryptocurrency Association commissioned the Harris Poll to conduct a similar survey. Their report finds that currently 20% of American adults now own cryptocurrency and 39% of those individuals use crypto to pay for goods and services.
Still Growing?
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As of mid-2025 the global crypto market capitalization is approaching $4 trillion according to Forbes, up 66% since the 2024 U. S. election. The large majority of that capitalization is in Bitcoin at $2.3 trillion followed by Ethereum at $456 billion.
Some estimates suggest global adoption of crypto may soon surpass an important tipping point, with over 10% of global penetration in developed countries by 2025’s year end. This is often referred to as the threshold where innovations go mainstream.
Cryptocurrency Garnering Government Support
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Nekvinda states that the cryptocurrency industry has a lot of new rules and long-awaited policy shifts emerging that will bring positive changes and clarity to the markets. Historically, the legal aspect of crypto has remained vague. These policy changes will make it easier for financial service businesses to include crypto into new products while retaining safe legal limits.
Policy Changes
The Genius Act has just been passed by the House and Senate in Congress and signed into law by President Trump. The Genius Act is designed to protect consumers and establishes rules for Stablecoins, a type of cryptocurrency linked to a reference asset, like the U.S. dollar or gold.
Banks are now able to manage and store cryptocurrency without formal government approvals to offer crypto services. Recently, JPMorgan Chase, Bank of America and Citigroup announced their intention to develop or explore the development of their own Stablecoins. JPMorgan also intends to develop a deposit token for institutional payments.
Conclusion
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Overall institutional interest is rising but still small, with less than 5% of spot-Bitcoin ETF assets (Exchange Traded Funds) held by pension funds and 10-15% held via hedge funds and wealth managers according to ChatGPT. Cryptocurrency inflows remain strong with approximately $50 billion invested into Bitcoin ETF’s in the first half of 2025. Blackrock’s iShares Bitcoin Trust already has $80 billion in assets under management. Most investment advisors have limited access to direct crypto custody, however regulated products like spot Bitcoin and Ethereum ETF’s, along with crypto trusts, are serving as increasingly efficient bridge solutions.
While Bitcoin’s volatility has decreased over the years it continues to experience larger price swings, both up and down, than stock market investments like the S&P 500. Since their inception, Pacific Wealth Management has been thoroughly analyzing and researching cryptocurrencies as viable candidates for our more aggressive investment portfolios. It is clear the entire asset class will continue to become more mainstream in the future and new investment alternatives will offer even better flexibility and liquidity in the years ahead.
Bibliography:
Is Crypto's Comeback in 2025 A Good Thing? What Financial Advisors Need to Know
Majority of Americans Aren't Confident in the Safety and Reliability of Cryptocurrency
Cryptocurrency Ownership among U.S. Households - Federal Reserve Bank of St. Louis
National Children's Alliance: Homepage
Securing Crypto Prosperity: Unveiling the Significance of Insurance in Cryptocurrency Portfolios
Introducing the 2025 Global State of Crypto Report - Gemini