Investor Ric Edelman has stated that, while cryptocurrency prices remain under pressure, adoption behind the scenes is accelerating. According to Edelman, progress among institutional investors and advances in tokenization are driving momentum, even as there is a noticeable slowdown on the retail investment side.
Divergence between institutional demand and retail interest
Edelman’s assessment highlights that, despite a sense of weakness in the market, crypto infrastructure continues to develop through regulated products. The featured analysis points to a transformative shift, particularly as institutional use cases expand, reinforcing that this evolution is largely independent of price movements.
Ric Edelman emphasized that crypto adoption is accelerating despite declining prices, with institutions and tokenization taking center stage, while retail investors are showing signs of slowing down.
Recognized for his work in financial education and investment advisory, Edelman identifies real-world asset tokenization and deepening institutional infrastructure as the main drivers of this change. Asset management companies, custodians, and wealth management platforms are increasingly embracing spot Bitcoin ETFs, tokenized treasury products, and stablecoin settlement solutions.
Mini Glossary: Tokenization refers to the conversion of real-world assets into digital tokens, representing them on the blockchain. Known as RWA (real-world asset) tokenization, this allows traditional financial instruments such as bonds to be transferred and tracked faster and more efficiently in the digital space.
This trend aligns with what is described as a ‘regulated entry’ into the crypto market. Data from SoSoValue indicates that US spot Bitcoin ETFs have attracted more than $50 billion in net inflows year-to-date as of September 25. This illustrates that institutional demand has remained resilient even during periods of softer price action.
| Segment | Key trend |
|---|---|
| Institutional | Spot Bitcoin ETFs, tokenized treasury products, and stablecoin settlements stand out |
| Retail | A decline is seen in transaction volumes and on-chain indicators |
Market focus shifts to infrastructure and compliance
The cooling of retail activity has been linked to lower trading volumes and weakening on-chain retail metrics, as tracked by CryptoQuant. This signals a growing distinction in focus among exchanges, developers, and protocols.
Exchanges are increasingly turning to institutional custody and over-the-counter trading solutions, while developers prioritize compliance procedures, API tools, and RWA infrastructure over consumer-driven speculation. Attention within crypto ecosystems is also moving away from short-lived trends toward more utility-driven areas like settlement infrastructure and regulatory compliance.
Market observers emphasize that, in this new cycle, interest is shifting away from speculative booms and toward productization, settlement infrastructure, and regulatory compliance.
Regulation paves the way for new products
The regulatory framework remains a key topic in this transformation. Growth in clarity around ETFs, custody services, and stablecoins has helped remove barriers for institutional participants. The European Union’s MiCA regulation and evolving guidance in the US are both cited as incentives stimulating the design of new products.
The article notes that the current cycle differs from those in 2017 and 2018, when retail excitement led the market and institutions followed later. In 2021, institutions took the lead, accelerating the pace of infrastructure development. Analysts suggest that, in the 2026 cycle, productization—rather than investor enthusiasm—will be the defining factor.
