Traditional financial giants are quietly shifting towards the encryption market, a trend that is moving from niche margins to mainstream finance.

According to the latest report from BNY Mellon, 74% of family offices managing over $1 billion have either allocated or are deeply researching encryption assets, an increase of 21% compared to the same period last year. The participation of these traditional wealthy elites marks an important turning point in the industry's development, and it is expected to bring about $300 billion in potential incremental capital inflow.

This transformation is primarily driven by three major factors:

First, the regulatory environment is gradually becoming clearer, and the launch of Bitcoin ETFs provides institutional investors with a compliant way to participate.

Secondly, the excellent performance of encryption assets significantly enhances the efficiency of traditional investment portfolios. Data shows that adding Bitcoin to a 60/40 investment portfolio can improve risk-adjusted returns by over 30%;

Third, the change in investment philosophy brought about by generational shifts, with approximately 64% of millennial heirs actively promoting the inclusion of digital assets in family wealth management frameworks.

In terms of configuring strategies, these financial institutions adopt a structured investment approach:

The core configuration ( accounts for about 80% ), mainly based on Bitcoin and Ethereum, managed through professional institutional custody services, with cold storage and insurance solutions becoming standard configurations.

Satellite assets ( account for approximately 20% ) tend to favor real asset tokenization projects and compliant decentralized financial platforms, which typically offer an annualized return of 15%-30%;

At the same time, the combination of CME Bitcoin options and gold ETFs is used as a hedge against market volatility.

On-chain data also confirms this trend, with a 70% monthly increase in institutional capital inflows to major exchanges, and the execution efficiency of large trades has also significantly improved.

The participation of large-scale institutions creates both opportunities and challenges.

On one hand, the industry's infrastructure is accelerating its upgrade, with an additional $5 billion in custody insurance coverage, and overall security standards are being improved; some exchanges are also beginning to offer professional trading services to a broader user base.

On the other hand, the movement of large capital can lead to significant market volatility, with a single trade at the level of $1 billion being enough to trigger a price fluctuation of over 5%; the uncertainty of regulatory policies remains a major risk factor, particularly measures targeting stablecoins that may result in large-scale capital withdrawal; and although there is strong interest, most family offices are still in a wait-and-see phase, with actual capital deployment potentially requiring 1-2 years.

As institutional capital continues to flow in, the landscape of the digital asset market is undergoing profound changes, and investment strategies must be adjusted accordingly to adapt to this new normal.