2025 Set to See Increases in Institutional Investment as Regulators Embrace Crypto

Over the past year, increased institutional investment has been a much-discussed potential catalyst for Bitcoin and other established cryptocurrencies. From November 2024 through February 2025, this was a material factor in the run-up in crypto prices.

More recently, Bitcoin, Ether, and other top cryptocurrencies are experiencing high volatility, due to fears regarding recently announced increases to U.S. trade tariffs. However, even as the tariff talk continues to impact the market, the institutional adoption catalyst for crypto has not necessarily gone away. At least, that’s the view of some top crypto company executives, who at recent blockchain industry conferences laid out a bullish forecast for the increased mainstreaming of Bitcoin, stablecoins, and other cryptocurrency assets.

In a recent interview at the DC Blockchain Summit, Binance CEO Richard Teng discussed the role of regulation in crypto growth and what the future may hold, “For any financial institution and for any company to thrive, it must not only pay attention to the risks and financial aspects of it but also growth. Regulators [can't] regulate into the ground because if you do, there's simply nothing to regulate."

Teng continued by commenting on crypto’s future under more regulatory clarity, "I learned about crypto and the more I learned about it, I really believed that this was going to be the future of finance. But to go mainstream, you need two elements: one is regulatory clarity and secondly, institutional adoption.”

Institutional Investment and Involvement Still in the Cards

As reported by Cointelegraph, Eric Turner, CEO of Messari, and Thomas Eichenberger, Chief Strategy Officer of Sygnum Bank, participated in a panel discussion with other industry leaders, as part of an event held at the 6th annual Paris Blockchain Week conference.

During the discussion, both Turner and Eichenberger argued that banking sector involvement in crypto is about to take off in a big way. While conceding that bank involvement could be “muted” during the current quarter, Turner noted that he’s “really excited for Q3 and Q4,” as he anticipates “really interesting” developments in the crypto market.

Eichenberger expressed similar sentiments, stating that “I think it’s a matter of fact that U.S. banks are preparing to be able to offer crypto custody and at least crypto spot trading services anytime soon.”

Alongside this, both Turner and Eichenberger discussed the particular factor at play that stands to drive further institutional involvement in crypto, and how this factor could “trump” other variables having either a positive or negative impact on cryptocurrency prices right now.

It’s All About Regulatory Clarity

Considering that the late 2024/early 2025 cryptocurrency rally took shape and fizzled out exactly during the time between Donald Trump’s election as U.S. President, and his inauguration to a second term in office, President Trump is seen as the driving force behind the institutional mainstreaming of crypto.

Also, given how potential changes in U.S. tariff policy proposed by Trump have led to roller coaster price action in both stocks and cryptocurrencies, one can say that the President is also the factor behind the recent sell-off for this asset class. However, while moves from the 47th President undoubtedly influence crypto price action, Turner argued that it’s regulatory clarity, not Trump himself, that’s driving the banking industry’s big pivot into cryptocurrency services.

As Turner put it, “not just President Trump himself, but the SEC and all these regulatory industries are really embracing crypto.” In other words, it’s all about regulatory clarity. Further remarks from Eichenberger made during the panel discussion align with Turner’s view. Per Eichenberger, international banks with a U.S. presence have kept plans to enter the crypto services market on hold, due to regulatory concerns.

Now, though, as not just the U.S., but other jurisdictions, have fast-tracked the establishment of clear regulatory frameworks, the Sygnum Bank exec believes “there’s no one to be afraid anymore in terms of regulatory authorities worldwide,” signaling international banks will soon move into the space.

Bottom Line

Turner and Eichenberger’s remarks notwithstanding, only time will tell whether the banking sector makes its big pivot into crypto starting in the latter half of 2025. Not only that, it’s unclear whether increased institutional involvement will help to serve as an accelerant when it comes to increased institutional investment.

With this in mind, it’s also unclear whether all of this will translate into higher prices for Bitcoin and institutional-grade altcoins. Nevertheless, these remarks, and the regulatory developments backing them up, just well once again serve as a positive catalyst for cryptocurrency prices.

While rising regulatory clarity may be what banking’s involvement in crypto services hinges upon, other factors at play in the cryptocurrency space may determine future price direction. President Trump may not be the sole reason why the banking sector is gearing up for an upcoming expansion into crypto services.

However, subsequent policy decisions made by the President, whether regarding tariffs or crypto regulatory policy itself, may determine whether Bitcoin and other cryptos surge or sink from here.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. TIMES NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions. No Times Now Journalists are involved in creation of this article.)

Get Latest News Live on Times Now along with Breaking News and Top Headlines from Cryptonow and around the world.