What NYDIG means by a shrinking investable universe in crypto
NYDIG’s Global Head of Research, Greg Cipolaro, argues the crypto “investable universe” is narrowing as the industry matures and investors gravitate toward finance-first use cases. according to NYDIG, capital increasingly concentrates where blockchains deliver clear monetary or market-structure advantages.
In this framing, applications endure only when blockchain benefits exceed costs, attributes like permissionless settlement, immutability, and censorship resistance matter most for money-like instruments and financial rails. The note highlights core areas: Bitcoin, stablecoins, real‑world asset tokenization, custody, and foundational DeFi infrastructure.
The analysis also situates today’s consolidation within prior cycles when, at peaks such as 2017 and 2021, bitcoin ceded share to rotating narratives. The selection pressure now appears stricter, prioritizing usage, security, and measurable economics over breadth.
Why it matters for institutional capital and market structure
Institutions increasingly demand regulatory defensibility, operational resilience, and measurable cash flows. As reported by BeInCrypto, large investors are prioritizing infrastructure, tokenization, custody, and settlement rails, over speculative long‑tail tokens, pending durable utility and transparent revenues.
That tilt reshapes market structure. Liquidity and price discovery migrate to assets with deeper markets, standardized disclosures, robust security budgets, and clearer compliance pathways. Breadth narrows, correlations can rise, and benchmarks skew toward assets with proven utility.
Editorially, this consolidation is a maturation signal rather than a retreat from innovation. “The ‘investable universe’ is narrowing,” said Greg Cipolaro, Head of Research, underscoring a focus on fewer, stronger use cases over diffuse experimentation.
Immediate impact on Bitcoin dominance, altcoins, and core infrastructure
A narrower investable set tends to reinforce Bitcoin’s role as a macro, collateral, and reserve‑like asset. When institutions scale exposure prudently, altcoins without strong product‑market fit can face valuation pressure and thinner liquidity.
As reported by Cointelegraph, 2025 functioned as a “repricing” year in which smart‑contract chains and DeFi tokens fell by roughly two‑thirds as investors re‑evaluated fundamentals and business models. The result concentrates flows toward networks and protocols demonstrating sustained usage and revenue.
Core infrastructure, stablecoin issuance, compliant custody, on/off‑ramps, and base settlement layers, benefits from this consolidation. These rails are closer to regulated workflows, enterprise integrations, and cost‑reduction mandates for capital‑markets participants.
At the time of this writing, Bitcoin (BTC) traded near $65,781 with very high realized volatility reported around 11.03% and a neutral technical profile by standard momentum gauges. This is context only and not investment advice.
How to evaluate durable utility and real-world asset tokenization
Real‑world asset (RWA) tokenization succeeds when it reduces frictions in issuance, transfer, and servicing while preserving regulatory controls. Institutions test whether on‑chain settlement meaningfully lowers costs, improves transparency, and broadens distribution under compliant workflows.
RWA programs also hinge on reliable oracles, bankruptcy‑remote structures, reconciliations with off‑chain registries, and clear redemption mechanics. Strong programs document legal enforceability, audit trails, and counterparty risk segregation.
Durability signals: usage, protocol revenues, security, and regulatory positioning
Durability begins with provable usage: consistent on‑chain volumes, active addresses tied to economic activity, and retention that is not subsidy‑driven. Sustainable protocol revenues and fee capture show that users will pay for the service.
Security spans economic security (staking or hash power), rigorous audits, and incident response maturity. Regulatory positioning covers KYC/AML alignment, disclosure practices, and custody standards that match institutional due diligence.
Where institutions concentrate now: Bitcoin, stablecoins, RWA, custody, and core DeFi rails
Institutional capital tends to consolidate in assets and services with clear monetary utility, deep liquidity, and operational readiness. Bitcoin functions as macro collateral and store‑of‑value‑like exposure with global settlement.
Stablecoins support fiat settlement and working capital on public rails. RWA tokenization targets yield‑bearing instruments with improved issuance and transfer. Custody and core DeFi rails provide the compliance‑aligned infrastructure layer institutions can underwrite.
FAQ about investable universe
Which crypto sectors and assets are still attracting institutional capital right now?
Bitcoin, regulated stablecoins, tokenized real‑world assets, institutional custody, and core settlement/DeFi infrastructure that demonstrates measurable usage and sustainable economics.
How does rising Bitcoin dominance affect altcoins and DeFi tokens?
It concentrates liquidity and risk budgets, raising the bar for fundamentals. Projects without durable usage, revenues, or security see tighter funding and greater performance dispersion.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- HashKey Prices IPO at High End, Raises $206 Million
- Capital A and Standard Chartered Explore Malaysia Stablecoin Launch
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- HashKey Prices IPO at High End, Raises $206 Million
- Capital A and Standard Chartered Explore Malaysia Stablecoin Launch
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- China, US Conclude Trade Talks with Focus on Cooperation
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Court Upholds Fed’s Rejection of Custodia Bank’s Request
- EU Opens Antitrust Probe Into Deutsche Boerse and Nasdaq Derivatives Dealings
- Kazakhstan Explores Crypto Reserves Backed by National Funds
- Nordea Bank Introduces Bitcoin ETP Trading for Nordic Customers
- JPMorgan Increases Holdings in BlackRock’s Bitcoin ETF
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Crypto Leaders Address Macro Volatility Amid Market Shifts
- JPMorgan Chase Launches 24/7 Digital Deposit Token for Clients
- MicroStrategy Retains Spot in Nasdaq 100 Amid Criticism
- HashKey Prices IPO at High End, Raises $206 Million
- Capital A and Standard Chartered Explore Malaysia Stablecoin Launch
Latest
Bitcoin Reclaims $65K After Trendline Sweep as Bottom Debate Grows
Aster Reclaims Trendline Support as Bulls Target Breakout Above $0.91 Level
Press Release
AVATAR48 Redefines Intimacy with $AYA Launch on Virtuals; Onboards Global Icon Eimi Fukada
Phemex Completes Full Integration of Ondo Finance Tokenized Equity Suite
