In today’s “Crypto for Advisors” newsletter, CoinDesk Research Team Leader Joshua De Vos breaks down cryptocurrency trends and adoption from CoinDesk’s Quarterly Digital Asset Report.
Then, Kim Klemballa answers what advisors need to know about “Ask an Expert” cryptocurrencies.
Thanks to our sponsor of this week’s newsletter, Grayscale. For financial advisors near Denver, Grayscale will host an exclusive event, Crypto Connect, on Thursday, October 23. Learn more.
– Sara Morton
Q3 Quarterly Digital Asset Review
Digital assets extended their rally in the third quarter as liquidity returned to global markets. As noted in CoinDesk’s Quarterly Digital Asset Report, the Federal Reserve’s decision to cut rates from 4.0 to 4.25 percent created the most favorable backdrop for risk assets since 2022. Bitcoin ended the quarter up 6.4%. The S&P 500 and gold posted stronger gains, but the drivers for cryptocurrencies were different. Demand came primarily from institutions, rather than merchants.
ETFs take the lead
ETF flows continued to define the current market structure. US bitcoin and ether products recorded net inflows of $8.78 billion and $9.59 billion. It was the first time ether ETFs outperformed bitcoin ETFs, reflecting broader institutional diversification. Public companies added 190,000 BTC to their treasuries during the quarter, increasing total holdings to 1.13 million BTC, which is more than 5% of the circulating supply.
Corporate adoption remains the silent force in this cycle. The “digital asset treasury” model, which originated with bitcoin, is now spreading across sectors and regions. Forty-three new public companies disclosed their holdings in the third quarter. For many, digital assets are no longer an experiment, but rather a small recurring allocation on the balance sheet.
Wider market rotations
Bitcoin dominance fell from 65% to 59%, marking the first sustained rotation towards altcoins since early 2021. The CoinDesk 20 index returned 30.8%, outperforming Bitcoin by a wide margin. The CoinDesk 100 index gained 27.8%, while narrower benchmarks such as the CoinDesk 5 index rose 15.4%.
The rebound was broad but selective. Ether , and chain link It led CoinDesk 20 with gains of 66.7%, 66.9%, and 59.2%, respectively. Flows into ether ETFs and treasury portfolios helped push the asset to a new all-time high near $4,955 in August. Solana rose 34.8%, supported by corporate buildup and record app-level revenue.
Treasury bonds become multi-asset
Public companies now report exposure to more than 20 digital assets. Ether leads with $17.7 billion in value held on balance sheets. Solana follows with 3.1 billion dollars. 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. Treasury allocations that began with bitcoin are expanding to other assets. For some corporations, assets function as reserves; For others, they serve as strategic positions tied to ecosystem partnerships or product launches.
The growth of these vehicles has also revealed a hierarchy in the market. A handful of companies now dominate trading activity within the “digital asset treasury” segment, while smaller players face pressure as market net asset values fall below parity.
Landmarks and structure
The use of benchmarks has become fundamental to this market change. CoinDesk 20 and CoinDesk 5 now serve as benchmarks for ETFs, structured notes and derivatives. Its methodology, based on liquidity, currency coverage and accessibility, is aligned 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 stake-based ETFs are expected to follow, giving allocators new tools to manage exposure across a broader range of digital assets.
The road ahead
Historically, the fourth quarter has been the strongest quarter for bitcoin, averaging 79% since 2013. With the easing of monetary policy and the continued adoption of balance sheets, conditions favor risk-taking behavior. However, the composition of that risk continually changes.
Cryptocurrencies are no longer a single asset decision. It is evolving into a structured multi-asset allocation space supported by corporate participation and regulated access to products. For advisors, the market is beginning to reflect sustained flows of institutional capital, a sign that an asset class is moving steadily toward maturity.
– Joshua De Vos, Research Lead, CoinDesk
ask an expert
What are the top 3 things advisors should know when it comes to cryptocurrencies?
- Digital assets are growing, not disappearing. Major banks like Goldman Sachs are writing articles on why digital asset adoption is accelerating. In a revised forecast, Citi projects that the stablecoin market could reach more than $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 expected product launches, US-listed crypto ETFs and ETPs attracted $4.73 billion in net inflows in September, with ADV surpassing $542 billion and AUM reaching $194 billion, according to TrackInsight. Education and understanding of digital assets is critical as this asset class grows.
- Say it with me: “Bitcoin is just the beginning.” Bitcoin now represents approximately 59% of the total market capitalization and there were times when Bitcoin represented less than 40% of the market. One asset should not be a benchmark for the entire asset class. Diversification is key to potentially managing volatility and capturing broader opportunities.
- There are broad-based benchmarks in cryptography. The CoinDesk 20 Index captures the performance of leading digital assets and the CoinDesk 5 Index tracks the performance of the five largest components of CoinDesk 20. CoinDesk 20 is highly liquid, generating over $15 billion in total trading volume as of January 2024, and is available in twenty investment vehicles globally. CoinDesk 5 is the foundation of the first US multi-cryptocurrency ETP, the Grayscale CoinDesk Crypto 5 ETF (GDLC). CoinDesk Indices offers hundreds of BMR-compatible indices to measure, invest and trade in the ever-expanding crypto universe.
– Kim Klemballa, Head of Marketing, Indices and Data at CoinDesk
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