Bitcoin portfolios are entering a new phase as traditional financial giants build the plumbing that’s transforming digital assets from a speculative bet into a fundamental part of the financial stack. During a VettaFi webinar sponsored by CoinShares, industry experts outlined how 2026 marks a turning point where on-chain rails and traditional finance collide to create what they call “hybrid finance.”
The shift is measurable. Stablecoin market capitalization has surged from $25 billion five years ago to over $300 billion today, according to Matthew Kimmell, digital asset research analyst at CoinShares. Tokenized assets have jumped from $6 billion in early 2025 to $30 billion — a fivefold increase in 16 months.
These aren’t fringe numbers. Stablecoin issuers now rank as a top 15 holder of U.S. debt globally, Kimmell said.
“It’s less about hype and more about fundamentals,” Calvin Tintle, senior manager of national accounts and distribution at CoinShares, said during the session. The conversation among advisors has evolved from “what is bitcoin” to “why does this technology matter and how does this get implemented.”
Major wealth platforms are putting money behind that question. Morgan Stanley and Merrill Lynch now recommend up to 5% allocations to bitcoin across their platforms, according to Kimmell. Both firms are actively hiring and discussing digital assets internally.
The regulatory environment has accelerated the transition. Last summer’s Genius Act established rules for stablecoins and reserve requirements, Kimmell noted. Meanwhile, the CLARITY Act, a market structure bill, defines whether assets fall under Securities and Exchange Commission or Commodity Futures Trading Commission oversight.
The bill moved closer to a Senate floor vote following a breakthrough in the Senate Banking Committee, according to Kimmell. The main sticking point had been stablecoin yield provisions. “There seems to be a compromise,” Kimmell said, referring to the resolution between banking industry lobbyists and crypto firms.
The timing matters. With midterm elections approaching, the congressional calendar gets crowded, making early-year progress on financial legislation more valuable.
The Depository Trust & Clearing Corporation announced plans to begin trading tokenized securities in a pilot program launching in July, with full deployment in October. Participants include BlackRock, JPMorgan, Goldman Sachs and Nasdaq — institutions that handle trillions in daily settlement, Kimmell said.
“It’s no longer ‘The institutions are coming,’” Kimmell said. “They’re here.”
That presence is visible in quarterly 13F filings, Tintle said. Professional investor allocations to bitcoin ETFs have shown steady upticks. The list spans endowments, sovereign wealth funds, registered investment advisors, and hedge funds.
The fundamental case has changed. Bitcoin now trades on fundamentals rather than hype, Tintle argued, noting the asset’s resilience during the recent Iran conflict. The characteristics that matter are store of value, transferability, and decentralization, which advisors examine when evaluating portfolio fit.
Poll results during the webinar showed that 47% of attendees are watching from the sidelines, with 20% actively investing and others researching without allocating. When asked which instrument would have the biggest impact on traditional finance over the next three years, 42% chose tokenized traditional assets, 33% selected stablecoins, 20% picked bitcoin and 4% cited crypto-native financial services.
For those who feel they’ve missed early gains, Kimmell pushed back. Bitcoin remains a scarce, geopolitically neutral asset paired with its own settlement system designed for 24/7 global commerce. The story resonates most in emerging markets facing high inflation, he said.
“The party is just getting started,” Tintle added. Instant settlement and 24/7 trading markets are still being built. Companies are spending heavily on infrastructure. “This is still very much so early innings.”
For more news, information, and strategy, visit the CoinShares Crypto ETF Hub.
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