Market Pulse Q2 - 2025

Ecosystem developments impacting crypto’s investment case

Key Takeaways

Following a first quarter that was challenging for crypto and other risk assets, several factors converged in the second quarter of 2025 to help drive positive price momentum.

Regulatory Advancements: The US Senate approved legislation (GENIUS Act) to create a regulatory framework for stablecoins, the first major piece of crypto legislation in the US. Progress has been made on broader market structure legislation, but complexity and partisanship may still slow its progress.

Institutional Adoption: The unprecedented success of the Circle initial public offer (IPO) and the acceleration of public companies incorporating bitcoin into their businesses were the two most notable developments during the quarter. Both suggest more institutional interest in crypto and demand for digital assets going forward.

Ecosystem Developments: Bitcoin spot exchange traded funds (ETFs) in the US continued to see high demand, as corporate adoption helped push bitcoin (BTC) to three consecutive double-digit monthly returns. Ethereum’s strengthening narrative as the foundational layer for tokenization and DeFi is gaining traction, supported by improved on-chain activity and anticipation of stablecoin growth.