In today’s Crypto for Advisors newsletter, CoinDesk Research Team Leader Joshua De Vos analyzes cryptocurrency trends and adoption from the CoinDesk Quarterly Digital Assets Report.
Next, Kim Klembera answers what advisors need to know about cryptocurrencies in Ask the Expert.
Thanks to Grayscale for sponsoring this week’s newsletter. For financial advisors in the greater Denver area, Grayscale will host an exclusive event, “Crypto Connect,” on Thursday, October 23rd. learn more.
– Sarah Morton
Digital Asset Quarterly Review Q3
Digital assets extended their recovery in the third quarter as liquidity returned to global markets. The Federal Reserve’s decision to lower interest rates from 4.0% to 4.25% has created the most favorable backdrop for risk assets since 2022, as noted in CoinDesk’s Digital Assets Quarterly Report. Bitcoin ended the quarter up 6.4%. While the S&P 500 and gold posted strong gains, the dynamics for cryptocurrencies were different. Demand was primarily from institutions rather than traders.
ETFs take the lead
ETF flows continued to define the current market structure. US spot Bitcoin and Ether products recorded net inflows of $8.78 billion and $9.59 billion. This is the first time the Ether ETF has outperformed Bitcoin, reflecting broader institutional diversification. Listed companies added 190,000 BTC to their treasury during the quarter, increasing their total holdings to 1.13 million BTC, representing more than 5% of the circulating supply.
Corporate adoption remains a quiet force in this cycle. The “digital asset treasury” model that originated with Bitcoin is now spreading across sectors and regions. In the third quarter, 43 newly listed companies disclosed their stock holdings. For many, digital assets are no longer an experiment, but a small, regular allocation on a balance sheet.
Broader market rotation
Bitcoin’s dominance declined from 65% to 59%, marking the first sustained rotation to altcoins since early 2021. The CoinDesk 20 index returned 30.8%, significantly outperforming Bitcoin. The CoinDesk 100 index rose 27.8%, while narrower benchmarks such as the CoinDesk 5 index rose 15.4%.
The gathering was widespread but selective. ether , chain link led the CoinDesk 20 with gains of 66.7%, 66.9%, and 59.2%, respectively. The asset hit a new all-time high of around $4,955 in August, driven by inflows into Ether ETFs and government bond portfolios. Solana rose 34.8% on the back of corporate accumulation and record app-level revenue.
Government bonds become multi-asset
Currently, public companies report exposure to more than 20 digital assets. Ether ranks first with a value of $17.7 billion on its balance sheet. Solana follows with $3.1 billion. Tron, World Liberty Financial, and Ethena each have more than $1 billion.
This activity marks the next stage of institutional adoption: the diversification of the cryptocurrency sector itself. The Treasury allocation, which started with Bitcoin, has been expanded to include other assets. For some companies, assets serve as reserves. For others, it serves as a strategic position tied to ecosystem partnerships or product launches.
The growth of these vehicles has also revealed the hierarchical structure of the market. While a small number of companies currently dominate trading activity within the ‘digital asset treasury’ segment, smaller entrants are facing pressure as the market’s NAV remains below par.
Benchmark and structure
The use of benchmarks is central to this market shift. CoinDesk 20 and CoinDesk 5 currently serve as reference points for ETFs, structured notes, and derivatives. Its methodology, based on liquidity, exchange coverage, and accessibility, is consistent with the standards that institutional investors expect from traditional indices.
The SEC’s approval of generic listing standards for crypto ETPs is likely to accelerate this trend. Multi-asset and staking-based ETFs are expected to follow, providing allocators with new tools to manage exposure across a wider range of digital assets.
The road ahead
Historically, the fourth quarter has been Bitcoin’s strongest quarter, averaging 79% since 2013. Continued monetary policy easing and balance sheet adoption favor risk-on behavior. However, the composition of that risk is continually changing.
Cryptocurrency is no longer a single asset decision. It is evolving into a structured multi-asset allocation space supported by corporate participation and access to regulated products. For advisors, the market is beginning to reflect sustained institutional capital flows, a sign that the asset class is well on its way to maturity.
– Joshua de Vos, Research Lead, CoinDesk
ask an expert
What are the top three things advisors should know about cryptocurrencies?
- Digital assets are increasing, not decreasing. Major banks such as Goldman Sachs have written articles about why digital asset adoption is accelerating. In a revised forecast, Citi predicts that the stablecoin market could reach more than $4 trillion by 2030. Then, on September 17, 2025, the SEC introduced common listing standards for crypto ETFs, opening the door to a wide range of products. Ahead of these expected product launches, U.S.-listed crypto ETFs and ETPs saw net inflows of $4.73 billion in September, with ADV exceeding $542 billion and assets under management reaching $194 billion, according to Track Insights. Education and understanding of digital assets will be critical as this asset class grows.
- Say, “Bitcoin is just the beginning.” Bitcoin currently accounts for about 59% of the total market capitalization, but there was a time when Bitcoin accounted for less than 40% of the market. One asset should not be the benchmark for an entire asset class. Diversification is key to potentially managing volatility and capturing a wider range of opportunities.
- A wide range of benchmarks exist for cryptocurrencies. The CoinDesk 20 Index captures the performance of the top digital assets, while the CoinDesk 5 Index tracks the performance of the top five constituents of CoinDesk 20. CoinDesk 20 is highly liquid, with total trading volume of over $15 billion since January 2024, and is available in 20 investment vehicles worldwide. CoinDesk 5 is the foundation of the U.S.’s first multi-crypto ETP, the Grayscale CoinDesk Crypto 5 ETF (GDLC). CoinDesk Indices offers hundreds of BMR-compliant indices to measure, invest, and trade the ever-expanding world of cryptocurrencies.
– Kim Klemballa, Head of Marketing, CoinDesk Indices & Data