Rick Edelman Says Institutional Adoption, Asset Tokenization Are Key Crypto Growth Drivers

Institutional participation and the expansion of asset tokenization are the main growth drivers for digital assets, Rick Edelman, founder of the Digital Assets Council of Financial Professionals, said.

CoinDesk reported on June 23 that Edelman said investor sentiment and industry fundamentals are moving in opposite directions.

Sentiment has worsened amid concerns over billions of dollars in outflows from spot Bitcoin exchange-traded funds, wallet movements linked to Mt. Gox and regulatory uncertainty. Debate in the US Congress over the digital-asset market structure bill known as the CLARITY Act is further fueling uncertainty among investors, he said.

At the same time, institutions continue to expand their digital-asset businesses. BlackRock, JPMorgan, Morgan Stanley, Franklin Templeton, Fidelity, State Street and Invesco are actively advancing tokenization initiatives, with tokenized assets broadening beyond cryptocurrencies to traditional financial assets such as stocks, cash and ETFs, Edelman said.

He added that many financial firms are making their first digital-asset investments or considering increasing their existing allocations.

Edelman said a key variable for the market will be whether the digital-asset market structure bill passes. If approved, the measure could deliver the regulatory clarity institutional investors have been seeking and serve as a positive catalyst for the market. If the bill is delayed or fails, investor sentiment could weaken in the short term.