Exhibit 4: Higher fundraising potentially a sign of institutional confidence
New capital entering the crypto ecosystem is likely to come primarily through spot ETPs, in our view. Since the Bitcoin ETPs launched in the U.S. in January 2024, global crypto ETPs have seen net inflows of $87 billion (Exhibit 5). Despite the early success of these products, the process of incorporating crypto into mainstream portfolios is still in early innings. Grayscale estimates that less than 0.5% of U.S. advised wealth is allocated to the crypto asset class.[2] This number should grow as more platforms complete their due diligence, build out capital market assumptions, and incorporate crypto into model portfolios. Beyond advised wealth, early movers have already adopted crypto ETPs in institutional portfolios, including Harvard Management Company and Mubadala (one of Abu Dhabi’s sovereign wealth funds).[3] We expect this list to grow significantly in 2026.$BTC
