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Source: On-chain highlights
Introduction: When Jack Ma’s capital knocks on the door of Crypto
On September 2, 2025, according to the announcement of the Hong Kong Stock Exchange, Yunfeng Finance (0376.HK), which is indirectly held by Jack Ma, will use US$44 million to purchase 10,000 ETH as reserve assets.As soon as the news was announced, the company’s stock price rose sharply by 10%, and the Crypto industry is ushering in a historic turning point – When the “Jack Ma” capital included ETH in its reserves for the first time, this action was no accident: the helmsman in the next decade is gradually transforming from a technology geek to an institutional capital.
Industry consensus has emerged clearly: knowing how to package the on-chain world into a financial product that Wall Street can understand, the next decade of Crypto wave will be defined by these people.Yunfeng Financial’s $44 million holding is the best footnote to the alternation of this era.
Ernst & Young Report: 86% of institutions enter the market, Crypto ushers in an “institutional turning point”
The latest EY report reveals shocking data: 86% of financial institutions around the world have participated in the transaction or allocation of Crypto assets, and among these institutions, 59% of institutions invest more than 5% of asset management scale (AUM) in the digital asset field.A $100 billion institution means at least $5 billion, and its capital magnitude far exceeds the total of the retail market.
Three key signals for institutional entry:
•Broad coverage: 86% of mainstream financial institutions are planning to deploy Crypto
•Deep penetration:59% of the organization configuration exceeds 5% AUM
•Ecological maturity: Stablecoin usage rate is 84% DeFi participation rate reaches 75%
The “institutional turning point” of the Crypto market has arrived, and these data are the signs. When traditional capital such as Yunfeng Finance began to take heavy positions in ETH, a single case has evolved into an industry trend – Crypto’s valuation system and game rules are being rebuilt by institutional funds.
Five new trends in the industry led by institutions: from technical narrative to capital games
The real increment comes from Wall Street’s wallet
In the past few years, the Wall Street DATs (digital asset trading strategy) narrative brought about a real-money scale effect, while ZK technology, Layer2 and other concepts were only stuck in the “self-satisfaction” of the geek circle.According to the EY report, the proportion of institutional capital investment in the Crypto market in the total inflow reaches 63%, while the contribution of retail investors is only 37%, and the gap between the two is obvious.
Typically, DATs strategy, which establishes associations with traditional financial indicators (such as the Treasury bond yield curve), enables institutions to easily understand risk exposure. Although some institutions have motivation for short-term arbitrage, the liquidity it brings pushes up asset valuations objectively – Yunfeng Financial’s holdings in ETH have increased the valuation of relevant sectors by 22%, which just confirms the “catfish effect” generated by institutional funds.
Capital efficiency: From the TPS Arms Competition to “Every cent has to be reinstatement”
Institutional funds completely reversed the industry logic: from focusing on technical parameters such as TPS and TVL in the early stage to focusing on “capital efficiency”, that is, thinking about how to make every fund continuously generate interest.In Dolomite_io, the “liquidity reuse” technology allows a single asset to conduct market-making activities in three trading pairs, increasing the utilization rate of funds by 200%.MitosisOrg’s programmable liquidity protocol automatically adjusts asset allocation with AI algorithms, increasing the return on idle funds to 8.7%.
According to the EY report, the agency’s core requirements for Crypto products have become “annualized return volatility is less than 15%”. This situation forces the project party to change from “technical display” to “return certainty”.As a Wall Street fund manager said: We don’t care about the number of transactions that blockchain processes per second, but only focus on whether funds can generate interest as steadily as traditional bonds.”
Financial Engineering: Cryptography Falls, Victory of Structured Products
In financial products, institutional funds do not favor complex technical concepts, but prefer products that are “understandable and hedged”. Through the deep optimization of the on-chain order book, HyperliquidX controls the sliding point of an institution’s single million-dollar order to within 0.02% to achieve a CEX-level transaction experience; the pendle_fi’s Boros agreement, which attracted $1.2 billion in institutional funds for three months was launched, introducing the interest rate swap mechanism of traditional finance onto the chain, allowing institutions to lock in returns by swapping fixed interest rates and floating interest rates.
In financial products, institutional funds do not favor complex technical concepts, but prefer products that are “understandable and hedged”. Through the deep optimization of the on-chain order book, HyperliquidX controls the sliding point of an institution’s single million-dollar order to within 0.02% to achieve a CEX-level transaction experience; the pendle_fi’s Boros agreement, which attracted $1.2 billion in institutional funds for three months was launched, introducing the interest rate swap mechanism of traditional finance onto the chain, allowing institutions to lock in returns by swapping fixed interest rates and floating interest rates.
This confirms the conclusion of the EY report: 78% of institutions prefer Crypto products that are “traditional finance-like”.When institutional traders can evaluate on-chain derivatives with the familiar “Options Greeks” model, technical terms are no longer important—the victory of structured products is essentially “telling Crypto stories in Wall Street.”
B2B2C model: Institutions become “translators” in retail investors and the world on-chain
In the Crypto industry, the pure C-end model has proven to be difficult to sustain (only the exchange has succeeded), and the difference is that the B2B2C model has achieved large-scale growth through institutional intermediaries.The transformation of complex private key management into a familiar “on-chain asset custody pool” of “fund shares” is tailored for family offices by Fidelity Digital Assets.With the help of this custody pool, high net worth customers can invest in Crypto with the help of traditional brokerage channels. The current management scale has exceeded US$8.5 billion.
This “institutional translation” mechanism solves the industry’s pain points: simple products are needed by retail investors, and the release of on-chain value depends on complex logic, simplifying “cross-chain interaction” in the form of one-click subscription, and using institutions to transform “liquidity mining” into “fixed income certificates”, the world on-chain is enabling the wider mass market to reach with institutional intermediaries.
Compliance: Unfair advantages from “post-investment tickets” to “entry threshold”
Compliance has changed from cost burden to competitive advantage.Coinbase’s Base chain has attracted 47 traditional financial institutions to settle in with its US regulatory certification; Circle’s USDC has passed the fiat currency reserve audit and has become the first choice stablecoin for 84% of institutions to trade.The most typical Trump family WLFI fund is 3 times higher than similar uncompliant projects based on “government relationship endorsement” alone.
The EY report emphasizes that 82% of institutions list “compliance qualifications” as the primary criteria for choosing Crypto partners.When compliance becomes “entry tickets”, projects without licenses will be completely marginalized – this is not fair competition, but the law of survival in the era of institutions dominance.
Bull market predictions under the institutional frenzy: liquidity feast and FOMO moments
The potential funding scale that can be allocated to Crypto in the world currently exceeds one trillion US dollars at the institutional level, but the total market value is only US$480 billion, and the supply and demand gap has created a “liquidity barrier lake.”When institutional funds account for more than 50%, historical data shows that the Crypto market often ushers in a bull market of 3-5 times (when institutional funds account for 41% in 2021, Bitcoin rose as much as 302%.
The more important thing is that the “consistent bullish expectations” presented by institutions are giving birth to the FOMO effect. According to EY’s survey, 80% of institutions intend to increase their holdings in Crypto assets in the next 12 months. This mentality of “fear of missing opportunities” will create a self-reinforcement upward cycle.11 Hong Kong-listed companies have announced that they will follow up on the allocation of ETH after the announcement of Yunfeng Financial. The typical feature of this bull market is the “herd effect”.
In the next decade, stand on the shoulders of institutions and get on the car
The era of geeks in Crypto has come to an end, and a new decade led by institutions is beginning.For ordinary investors, the best strategy is to “borrow the power of institutions” – focus on three types of opportunities: compliant ETFs (such as ProShares Bitcoin Strategy ETFs have attracted US$14 billion), institutions’ heavy holdings (ETH, SOL, etc. have received 50+ institutional holdings), and B2B2C platforms (such as Fidelity Digital Assets’ retail channels).
The bull market has come, don’t be left behind.When Jack Ma’s capital has entered the market and 86% of institutions are running on the bus, the best choice for retail investors is not to worry about technical details, but to keep up with the pace of institutions – After all, the next decade of Crypto wealth feast is destined to be dominated by people who understand the “Wall Street language”.
Now is the moment of action: open your trading app and see the targets that institutions have heavily invested in. This may be the closest you have to the next wave of wealth.
