In today’s “Crypto for Advisors” newsletter, Joshua De Vos, head of the research team at CoinDesk, details crypto trends and adoption from CoinDesk’s quarterly digital assets report.
Next, Kim Klemballa answers what advisors need to know about “Ask an Expert” crypto.
Thanks to our newsletter sponsor this week, Grayscale. For financial advisors near Denver, Grayscale is hosting an exclusive event, Crypto Connect, on Thursday, October 23. Learn more.
–Sarah Morton
Q3 Digital Asset Quarterly Review
Digital assets extended their rally into the third quarter as liquidity returned to global markets. As noted in CoinDesk’s Quarterly Digital Assets Report, the Federal Reserve’s decision to cut rates from 4.0% to 4.25% created the most favorable backdrop for risk assets since 2022. Bitcoin finished the quarter up 6.4%. The S&P 500 and gold saw bigger gains, but the crypto drivers were different. Demand mainly came from institutions rather than traders.
ETFs take the lead
ETF flows have continued to define the current market structure. US spot Bitcoin and Ether products saw $8.78 billion and $9.59 billion in net inflows. This was the first time that ether ETFs outperformed bitcoin, reflecting broader institutional diversification. Public companies added 190,000 BTC to their treasuries during the quarter, bringing total holdings to 1.13 million BTC, or more than 5% of the circulating supply.
Business adoption remains the quiet force of this cycle. The “digital asset treasury” model, born from bitcoin, is now expanding across sectors and regions. Forty-three new public companies disclosed their holdings in the third quarter. For many, digital assets are no longer an experience, but rather a small recurring allocation on the balance sheet.
Wider market rotations
Bitcoin’s dominance fell from 65% to 59%, marking the first sustained rotation into altcoins since early 2021. The CoinDesk 20 Index returned 30.8%, significantly outperforming bitcoin. The CoinDesk 100 Index gained 27.8%, while smaller benchmarks such as the CoinDesk 5 Index rose 15.4%.
The recovery was broad but selective. Ether , and chain link dominated the CoinDesk 20 with gains of 66.7%, 66.9%, and 59.2%, respectively. Flows into ether ETFs and cash wallets helped propel the asset to a new all-time high near $4,955 in August. Solana grew 34.8%, supported by enterprise accumulation and record application-level revenue.
Treasuries go multi-asset
Public companies now report exposure to more than 20 digital assets. Ether leads with a value of $17.7 billion held on balance sheets. Solana follows with $3.1 billion. Tron, World Liberty Financial and Ethena each exceed $1 billion.
This activity marks the next phase of institutional adoption: diversification within the cryptocurrency sector itself. Cash allocations that started with Bitcoin are being expanded to other assets. For some companies, assets function as reserves; for others, they serve as strategic positions linked to ecosystem partnerships or product launches.
The growth of these vehicles has also revealed a market hierarchy. A handful of companies now dominate trading activity in the “digital asset treasury” segment, while smaller entrants come under pressure when the market’s net asset value drifts below parity.
Benchmarks and structure
The use of benchmarks has become central to this market evolution. CoinDesk 20 and CoinDesk 5 now serve as benchmarks for ETFs, structured notes and derivatives. Their methodology, based on liquidity, currency hedging and accessibility, aligns 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, giving allocators new tools to manage exposure across a wider range of digital assets.
The road ahead
Historically, the fourth quarter has been the strongest quarter for Bitcoin, averaging 79% since 2013. With monetary policy easing and balance sheet adoption continuing, conditions favor risk-oriented behavior. However, the composition of this risk is continually evolving.
Crypto is no longer a single-asset decision. It is evolving towards a structured, multi-asset allocation space supported by corporate participation and access to regulated products. For advisors, the market is starting to reflect sustained institutional capital flows, a sign of an asset class moving resolutely towards maturity.
– Joshua De Vos, Head of Research, CoinDesk
Ask an expert
What are the Top 3 Things Advisors Should Know About Crypto?
- Digital assets are growing, but not disappearing. Major banks like Goldman Sachs are writing articles explaining why the adoption of digital assets is accelerating. In a revised forecast, Citi predicts that the stablecoin market could reach over $4 trillion by 2030. And on September 17, 2025, the SEC introduced generic listing standards for crypto ETFs, opening the doors to a wide range of products. Ahead of these anticipated product launches, U.S.-listed crypto ETFs and ETPs attracted $4.73 billion in net inflows in September, with ADV surpassing $542 billion and assets under management reaching $194 billion, according to TrackInsight. Education and understanding of digital assets is essential as this asset class grows.
- Say it with me: “Bitcoin is only the beginning.” Bitcoin now represents around 59% of the total market capitalization and there have been times when Bitcoin represented less than 40% of the market. One asset should not be a benchmark for the entire asset class. Diversification is essential to potentially manage volatility and capture broader opportunities.
- There are large-scale benchmarks in cryptography. The CoinDesk 20 Index captures the performance of major digital assets and the CoinDesk 5 Index tracks the performance of the five major components of the CoinDesk 20. CoinDesk 20 is highly liquid, generating over $15 billion in total trading volume since January 2024 and is available in twenty investment vehicles worldwide. CoinDesk 5 is the basis of the first US multi-crypto ETP, the Grayscale CoinDesk Crypto 5 ETF (GDLC). CoinDesk Indices offers hundreds of BMR-compliant indices for measuring, investing, and trading in the ever-expanding crypto universe.
– Kim Klemballa, Head of Marketing, CoinDesk Indices & Data
Continue reading
