Wall Street's Growing Crypto Influence

The cryptocurrency sector is undergoing a fundamental transformation as traditional financial institutions increasingly dictate market narratives. Arthur Azizov, founder of B2 Ventures, reveals that 【75%】 of current crypto market activity stems from institutional players - a dramatic shift from the cypherpunk origins of blockchain technology.

ETF Boom and Banking Integration

Bitcoin ETFs have funneled 【$42 billion】 into crypto markets since January 2025, while major banks prepare to launch proprietary stablecoins. "Regulatory clarity will trigger a banking sector stampede," Azizov predicts, noting that established financial institutions possess the client networks to dominate crypto services rapidly.

——This institutional wave creates existential challenges for decentralized startups——

Government's Regulatory Push

National governments are accelerating crypto's institutionalization through stringent AML/KYC requirements. The APAC region now mandates identity verification for 【92%】 of crypto transactions, with Europe and North America following suit. This regulatory framework directly conflicts with DeFi's permissionless ethos but aligns with state financial monitoring priorities.

The Decentralization Dilemma

As banks and ETFs dominate Bitcoin flows, the original vision of peer-to-peer electronic cash faces marginalization. Azizov observes that small crypto innovators struggle against well-capitalized institutions, potentially creating a two-tier system where centralized entities control access points to decentralized networks.

Market data shows institutional holdings now represent 【38%】 of total crypto market capitalization - a figure projected to reach 60% by 2026. This tectonic shift raises fundamental questions about blockchain's disruptive potential versus its absorption into traditional finance.