Do you think the crypto market is still the realm of retail investors? You are very mistaken! The latest report shows that 86% of institutional investors globally have participated in or plan to increase their holdings in crypto assets. Giants like BlackRock, JPMorgan, and UBS have quietly laid out their strategies, and even pension funds and sovereign wealth funds are starting to enter the market. Many retail investors are still blindly speculating on coins, unaware that institutions have already targeted more promising core tracks. As a seasoned crypto analyst, today I will break down the 3 core tracks that institutions are most optimistic about, and how retail investors can keep up with institutions to make money.
Let me show you some shocking data: According to the EY-Parthenon Institutional Digital Assets Survey released in 2025, over 86% of global institutional investors reported having participated in or planned to invest in crypto assets within the next three years; Nomura's research showed that over half of institutions in Japan have incorporated digital assets into their strategic vision. Some may ask why institutions have suddenly become collectively optimistic about crypto assets. In my view, the core reasons are threefold: First, the regulatory framework is becoming clearer, with the passage of the U.S. (Genius Act), the implementation of the EU MiCA regulations, and the introduction of Hong Kong's (Stablecoin Regulations), which have cleared policy barriers for institutions to enter; second, the continued improvement of crypto infrastructure, with compliant custody and clearing systems maturing, addressing institutions' biggest concerns about fund security; third, the low correlation and anti-inflation properties of crypto assets have become important tools for institutions to hedge risks and pursue excess returns.
The first core sector: RWA tokenization (tokenization of real-world assets). This is currently the sector with the densest institutional layout, bar none. RWA refers to converting real-world assets like bonds, real estate, gold, and artworks into on-chain tokens for efficient circulation and financialization. According to a report from the Management and Economics Community in November, the RWA market is expected to exceed one trillion dollars by 2025. Currently, JPMorgan has deployed the Onyx project for on-chain corporate settlement, and Swiss banks are participating in RWA on-chain bond issuance, while MakerDAO is also actively exploring bond tokenization. In my view, the reason RWA is favored by institutions is that it bridges traditional finance and the crypto market, allowing institutions to participate in the crypto market using familiar asset forms, which lowers cognitive barriers and risks. For retail investors, there is no need to directly engage in complex RWA issuance; instead, focus on platform tokens dedicated to the RWA sector, such as those related to rwa.xyz, or invest in DeFi protocols that hold substantial RWA assets, like Aave V3 and Uniswap v4, which will directly benefit from the explosion of the RWA market.
The second core sector: AI×blockchain. This is seen by institutions as the 'future sector' and is also the most imaginative sector. In 2024, Eliza Labs' open-source framework will enable AI agents to be deployed across chains like Solana, and Virtuals Protocol will launch tokenized AI agents on Ethereum L2 Base, creating a new model of 'user creation-agent interaction-revenue sharing.' Since 2025, institutional investment in the AI×blockchain sector has exceeded $5 billion, with BlackRock leading multiple AI agent projects. In my view, the core value of AI×blockchain lies in its ability to realize DeFi automated investment, DAO intelligent governance, and other scenarios through AI agents, significantly enhancing the efficiency and intelligence of the on-chain ecosystem. For example, users can automatically manage their DeFi assets through AI agents, adjusting their investment portfolio according to market changes without manual operation; DAO organizations can use AI agents to automatically filter proposals and intelligently count votes, improving governance efficiency. For retail investors, focus on tokens from AI agent protocols, like the tokens from Virtuals Protocol, or projects that provide AI×blockchain infrastructure, such as Eliza Labs' related ecological tokens. It is important to note that this sector is still in its early stages and is experiencing significant volatility, so it is advisable to control positions and not blindly chase high prices.
The third core sector: Layer 2 scaling solutions. With the continued prosperity of the ETH ecosystem, Layer 2 has become a key focus for institutions as a solution to ETH network congestion and to reduce transaction costs. Currently, the 'Layer 2 + parallel EVM' architecture of RISE Chain has received investment from Vitalik, Taiko's ZK-Rollup technology has improved privacy efficiency, and Mantle is promoting cross-chain interoperability. According to data, by 2025, the transaction volume of ETH Layer 2 networks is expected to reach historic highs, while average costs remain at cyclically low levels, indicating that the user acceptance of Layer 2 is rapidly increasing. Institutions are optimistic about Layer 2 because it is key to the scaled development of the ETH ecosystem; only by solving performance issues can ETH truly achieve large-scale application. For retail investors, focus on the native tokens of leading Layer 2 projects, such as ETH from Base and MNT from Mantle, as these projects possess strong technological advantages and ecological resources with great long-term potential. Additionally, pay attention to DeFi and NFT projects within the Layer 2 ecosystem, such as popular DeFi protocols on Base, as these projects will benefit from the growth of Layer 2 users.
Finally, here are three key reminders for retail investors: First, the sectors that institutions focus on often have long-term value, but there may be short-term volatility. Don't chase after overnight wealth; be prepared for long-term holding. Second, when selecting projects, prioritize those led by institutions, with strong technical teams and high ecological activity, and avoid investing in vaporware. Third, do not put all your funds into one sector; ensure good asset allocation, for example, dividing funds into three parts to invest in mainstream assets like BTC/ETH, RWA sector projects, and AI×blockchain sector projects to reduce the risk of relying on a single sector.
Many friends ask me how to get the latest updates on institutional layouts. It's actually quite simple; you can follow research reports from leading platforms like Gate Research Institute and EY-Parthenon. These reports will track the investment trends of institutions in real time. Follow me @链上标哥 so you won't get lost! Remember, in an institution-led crypto market, only by keeping pace with institutions can you achieve long-term profits in the market.
