The encryption asset market enters a new stage led by institutions, and concept stocks usher in investment opportunities

In the first half of 2025, the global encryption asset market experienced a significant shift from being retail-driven to being dominated by institutions. Bitcoin reached an annual high of $110,000 on May 22, with a large influx of institutional funds driving the transformation of encryption assets from speculative products to formal asset allocation tools. Against this backdrop, encryption-themed stocks have ushered in new investment opportunities.

In the US stock market, a certain trading platform's stock price fluctuated at a high level, reaching a maximum of $271.95 on May 22. Circle experienced multiple circuit breakers on its first day of listing on June 5 due to a surge, ultimately rising about 167% from the issue price. In the Hong Kong stock market, the Hong Kong "Stablecoin Regulations" boosted market confidence, and Huaxing Capital Holdings attracted attention due to its early investment in Circle, with a rise of over 14% during trading on June 9. Other Hong Kong stocks such as Lianlian Digital, OKLink, Yikatech, and ZhongAn Online also saw significant increases. The A-share market was similarly influenced by the positive atmosphere, with outstanding performances from stocks like Cuiwei Co., Zhongke Jin Cai, and Hengbao Co.

Overall, the rise in encryption asset prices from late May to early June has become a key factor driving the performance of the crypto concept stock market, marking a new stage in the institutionalization, compliance, and value reconstruction of investments. Investors have higher expectations for the shift from "speculating on coins" to "speculating on stocks."

The Resonance Logic of Encryption Assets and Encryption Concept Stocks

Recently, encryption assets have performed prominently, mainly for the following reasons:

First of all, the effects of institutional control and capital concentration are obvious. In May 2025, Bitcoin reached its yearly high, and on-chain data showed a significant increase in the proportion of coins held by institutions. Several asset management giants have absorbed billions of dollars through spot ETFs, marking the official inclusion of Bitcoin into the global asset allocation model.

Secondly, the Ethereum ecosystem has simultaneously exploded, with Layer 2 transactions accounting for over 60%, and the total value locked (TVL) exceeding $108 billion. The Cancun upgrade has improved network processing efficiency, driving up ETH prices, and the frequency of smart contract calls has increased by 55% year-on-year.

In addition, the compliance process for stablecoins is accelerating, reshaping the underlying financial infrastructure. The U.S. "GENIUS Act" establishes the requirement for "100% USD/U.S. Treasury reserves," driving the market value of mainstream stablecoins to exceed $280 billion. The Hong Kong "Stablecoin Regulation" has been implemented, directly serving cross-border payment and supply chain finance scenarios.

These factors have jointly driven up the prices of encryption assets, as well as the stock performance of related listed companies.

Encryption Concept Stocks: The Industrial Coupling and Valuation Restructuring Behind Stock Price Correlation

With the booming cryptocurrency market, encryption concept stocks have also welcomed a wave of investment enthusiasm.

In the US stock market, a certain trading platform maintained high volatility from late May to early June, with a peak of $271.95 on May 22. Mining company Marathon Digital Holdings' stock price stabilized in the range of $15.5 to $16, while Riot Platforms remained in the range of $4.5 to $5. Stablecoin issuer Circle went public on June 5, with its stock price surging 167% on the first day, becoming the market focus. Mining and blockchain stocks such as Bitfarms and HIVE Blockchain also showed varying degrees of increase.

In the Hong Kong stock market, influenced by the upcoming implementation of the Hong Kong "Stablecoin Regulations", the performance of stablecoins and encryption concept stocks is strong. Huaxing Capital Holdings rose more than 14% during the morning session on June 9, closing up over 10%, due to its early investment in Circle attracting attention. Lianlian Digital saw an intraday increase of nearly 80% on June 2; OKLink rose over 41%; Yikatong Technology increased nearly 40%; ZhongAn Online rose 31.56% on May 29, with a cumulative increase of over 70% in the last five trading days. Other companies such as Lianyi Rong Technology, JD.com, and China Everbright Holdings also followed suit, with increases mostly between 5% and 12%.

The A-share market sees active performance in the digital currency and encryption security sectors. Cuiwei Co., Ltd. rose 10.04% on June 3; Zhongke Jin Cai hit the daily limit on June 5; Hengbao Co., Ltd. saw an intraday increase of 4.36% on June 9, with a cumulative increase of nearly 30% over the past 5 days; Yash光电 increased by about 4.6% from the end of May to early June. Overall, A-share related targets are performing steadily, driven by policies and technology.

The Three Major Driving Forces of Value Reconstruction: Compliance, Institutionalization, and Technological Innovation

Recently, the value of encryption assets and related stocks has risen significantly, reflecting a profound restructuring of the entire industry's value system. This transformation is mainly driven by three key forces.

First, compliance has become the cornerstone of industry development. By 2025, major global economies will accelerate the improvement of regulatory frameworks. The U.S. "GENIUS Act" requires that stablecoin reserve assets be 100% pegged to the U.S. dollar or U.S. Treasury bonds and be audited regularly, while the EU's MiCA legislation promotes industry centralization. Hong Kong, on the other hand, has formed a unique advantage through a "dual-track" regulatory model. Compliance not only enhances market transparency and security but also brings about a "license premium," with institutional investors being more inclined to choose compliant platforms, resulting in more stable and continuous capital inflows.

Secondly, the continuous inflow of institutional funds is reshaping the market pricing mechanism. Represented by a certain company's Bitcoin ETF, institutional investors are including encryption assets in their long-term asset allocation, with sovereign funds and corporate treasuries increasingly viewing digital assets as an inflation hedge. The institutionalization of the capital structure has strengthened the correlation between cryptocurrency prices and related stocks, driving the market from retail speculation to rational investment.

Finally, technological innovation injects new momentum into industry development. Traditional financial institutions actively explore the application of blockchain technology, launching on-chain gold tokens and bond platforms to enhance asset digitization and transaction efficiency. The advancement of technology not only optimizes infrastructure but also endows encryption-related enterprises with more "hard technology" attributes, promoting the market valuation logic to leap from purely financial attributes to technology innovation attributes.

These three driving forces interact with each other, jointly pushing encryption assets and their related stocks into a more mature, compliant, and technology-driven new era, where the value assessment system is achieving a qualitative leap.

Regulatory Divergence, Scene Implementation and Investment Paradigm Leap

As the global encryption asset market matures, the regulatory environment will present a more differentiated and refined pattern from 2026 onwards. The US SEC plans to launch encryption asset custody licenses, the EU is strengthening anti-money laundering (AML) and know your customer (KYC) rules, and Hong Kong is accelerating the construction of a digital asset hub, actively attracting compliant encryption companies to settle. This regulatory difference not only drives up the value of compliant licenses but also creates cross-regional compliance arbitrage opportunities, making companies with compliance qualifications in multiple regions the preferred targets for institutional capital migration.

The industry concentration will further increase, licensed institutions will control the majority of the market share, compliance qualifications will become the core threshold for the survival and development of enterprises, creating a strong institutional moat and gaining long-term capital favor.

In terms of asset digitization and scenario implementation, Real World Assets (RWA) are becoming an important bridge connecting traditional finance and digital finance. Data platforms predict that the global RWA market size will exceed hundreds of billions of dollars in the coming years, with real estate, carbon credits, and supply chain finance being the main implementation scenarios. The application of blockchain technology has accelerated the enhancement of asset securitization and circulation efficiency.

At the corporate level, cases of digital asset allocation are increasing. Taking the Hong Kong-based cooking platform "Riri Zhu" as an example, its parent company has initiated a large-scale Bitcoin purchasing plan, aiming to accumulate 5,000 Bitcoins over three years, with the goal of using digital assets as an important store of value and exploring their potential in the digital economy. This practice of incorporating digital assets into the corporate balance sheet marks a shift in the investment paradigm from mere price speculation to asset diversification and value symbiosis.

Overall, the continuous improvement and differentiation of regulations, the ongoing implementation of digital asset scenarios, and the upgrading of investment concepts by institutions and enterprises are collectively driving the cryptocurrency assets and related stock markets into a more mature, compliant, and value-driven new phase. Investors should focus on "encryption value creators" with compliance advantages, technological innovation, and scenario application capabilities to seize long-term investment opportunities that transcend cycles.

Conclusion: Value Anchoring in the New Paradigm

Institutionalized non-cyclical bubbles of encryption assets are a systematic acceptance of the "decentralized trust mechanism" by the global financial system. From "speculating on coins" to "speculating on stocks", the investment logic has evolved from zero-sum games to value symbiosis. Compliance constitutes the bottom line for corporate survival, technology determines the growth slope, and scenario implementation shapes the valuation ceiling.

The policy dividends of Hong Kong stocks, the business transformation of US stocks, and the technological breakthroughs of A-shares collectively form a sample of the reconstruction of the market valuation system. In the future, core opportunities will no longer be short-term price games, but will focus on compliance barriers, technological depth, and scene integration capabilities to uncover "encryption value creators" that transcend cycles. This new paradigm indicates that a new era of deep integration between digital finance and traditional finance has already begun.