In a startling shift from previous cycles, institutional investors are now creating “sticky money” in crypto markets as U.S. policy drives unprecedented adoption.

• Bitpanda CEO Eric Demuth reveals institutional capital is transforming crypto from speculative bets to anchored investments
• Trump administration’s pro-crypto stance creates mandatory adoption pressure globally
• Major U.S. banks actively developing stablecoin and tokenized asset offerings

The cryptocurrency landscape is experiencing a fundamental transformation unlike anything seen before, with long-term institutional investments replacing volatile retail speculation, according to Bitpanda CEO Eric Demuth.

Speaking at Consensus Hong Kong on Wednesday, Demuth explained that the current market dynamics represent a significant departure from the retail-driven frenzy of 2021.

“This isn’t just another cycle,” Demuth emphasized during his fireside chat. “What we’re seeing now is institutional capital creating ‘sticky money’ – investments that are anchored for the long term rather than chasing quick profits.”

Vienna-based Bitpanda, which serves over 6 million users across Europe and recently received regulatory approval from the UK’s Financial Conduct Authority (FCA), stands at the forefront of this evolution. The platform offers not only cryptocurrencies but also stocks and precious metals.

Demuth pointed to the Trump administration’s aggressive crypto embrace as a watershed moment forcing global adaptation. “The Trump administration is forcing everybody to do this, it’s not an option anymore, […] it’s mandatory,” he stated.

The clearest evidence of this shift lies in Bitcoin ETFs, which have accumulated nearly $58 billion in assets under management in just their first year of trading. These investment vehicles represent a maturing market where major financial players are establishing long-term positions rather than speculative bets.

While Bitcoin leads adoption, Demuth believes altcoins will follow once U.S. regulations evolve to permit alternative crypto ETFs.

Perhaps most significantly, Demuth predicts U.S. banks will lead the next adoption wave.

“[Crypto] has been made one of the pillars of U.S. economic and financial policy, so you have the biggest financial power in the world putting [crypto] on the spotlight which means all the banks now have to either look into it or even offer something,” he said.

This institutional evolution will likely manifest in U.S. banks directly issuing stablecoins and developing tokenized assets ranging from government bonds to real estate.

In Europe, Bitpanda continues navigating the complex regulatory environment while holding multiple licenses. Rather than expanding globally, Demuth indicated the company remains focused on European growth, believing the potential customer base remains sufficiently large.

The company has, however, extended its B2B services, licensing crypto infrastructure to banks across Europe and the Middle East. Major financial institutions including Germany’s Deutsche Bank and France’s largest banking group already utilize Bitpanda’s backend systems.