Ric Edelman said crypto adoption is picking up on the institutional side even as prices remain soft, with the market’s center of gravity shifting away from retail speculation and toward regulated products, tokenization, and settlement infrastructure. In his view, this phase is no longer defined only by price action, as institutional usage and product buildout continue to advance on their own track.
Regulated products remain the main entry point for institutions
Edelman identified real-world asset tokenization and the expansion of institutional infrastructure as the main forces behind the shift. Asset managers, custodians, and wealth management platforms are increasingly using spot Bitcoin ETFs, tokenized treasury products, and stablecoin-based settlement tools. The article describes this as a regulated path into the crypto market.
Data from SoSoValue shows that US spot Bitcoin ETFs had drawn more than $50 billion in net inflows year to date as of September 25. The figure is presented as evidence that institutional demand has held up even during weaker price periods. Edelman’s point is that market structure is changing, and that change is being driven less by momentum trading than by institutional adoption and financial product development.
Retail participation cools as on-chain metrics weaken
That institutional strength is being matched by softer retail engagement. The article cites CryptoQuant data showing lower transaction volumes and weaker on-chain retail indicators, pointing to a slowdown in activity from individual investors. The split is also changing priorities across exchanges, developers, and protocols.
Exchanges are putting greater emphasis on institutional custody and over-the-counter trading services. Developers are focusing more on compliance processes, API tooling, and RWA infrastructure than on consumer-led speculative themes. Attention across crypto ecosystems is also moving away from short-lived trends and toward settlement systems and regulatory alignment.
Regulatory clarity is shaping the next product cycle
The article says clearer rules around ETFs, custody, and stablecoins are lowering barriers for institutional participants. The European Union’s MiCA framework, along with evolving guidance in the United States, is cited as support for the creation of new crypto-linked products. Market watchers quoted in the piece say this cycle is being defined less by speculative surges and more by productization, settlement infrastructure, and compliance.
It also contrasts the current phase with earlier cycles. In 2017 and 2018, retail enthusiasm led the market and institutions arrived later. By 2021, institutions had taken the lead and sped up infrastructure development. Analysts cited in the article say that in the 2026 cycle, productization rather than investor excitement may be the feature that sets the tone.