In today’s «Crypto for Advisors» newsletter, Joshua De Vos, research team lead at CoinDesk, breaks down crypto trends and adoption from the CoinDesk Quarterly Digital Asset Report.

Then, Kim Klemballa answers what advisors need to know about crypto «Ask an Expert.»

Thank you to our sponsor of this week’s newsletter, Grayscale. For financial advisors near Denver, Grayscale is hosting an exclusive event, Crypto Connect, on Thursday, October 23. Learn more.

– Sarah Morton

Digital Asset Quarterly Review Q3

Digital assets extended their recovery in Q3 as liquidity returned to global markets. As stated in CoinDesk’s Digital Assets Quarterly Report, the Federal Reserve’s decision to cut rates to 4.0 percent to 4.25 percent created the most favorable backdrop for risk assets since 2022. Bitcoin ended the quarter up 6.4%. The S&P 500 and gold posted stronger gains, but the drivers of crypto were different. The demand primarily came from institutions, rather than traders.

ETFs Take the Lead

ETF flows continued to define the current market structure. U.S. spot bitcoin and ether products recorded $8.78 billion and $9.59 billion in net inflows. It was the first time that ether ETFs outpaced bitcoin, reflecting broader institutional diversification. Public companies added 190,000 BTC to their treasuries during the quarter, increasing total holdings to 1.13 million BTC, which is more than 5% of the circulating supply.

Corporate adoption remains the quiet force in this cycle. The “digital asset treasury” model, which originated with bitcoin, is now spreading across sectors and regions. Forty-three new public firms disclosed holdings in Q3. For many, digital assets are no longer an experiment, but rather a small, recurring allocation on the balance sheet.

Broader Market Rotations

Bitcoin’s dominance fell from 65% to 59%, marking the first sustained rotation into altcoins since early 2021. The CoinDesk 20 Index returned 30.8%, outperforming bitcoin by a wide margin. The CoinDesk 100 Index gained 27.8%, while narrower benchmarks such as the CoinDesk 5 Index rose 15.4%.

The rally was broad but selective. Ether (ETH), Avalanche (AVAX), and Chainlink (LINK) led the CoinDesk 20 with gains of 66.7%, 66.9%, and 59.2%, respectively. Flows into ether ETFs and treasury portfolios helped push the asset to a new all-time high near $4,955 in August. Solana rose 34.8%, supported by corporate accumulation and record app-level revenue.

Treasuries Go Multi-asset

Public companies are now reporting exposure to more than 20 digital assets. Ether leads with $17.7 billion in value held on balance sheets. Solana follows with $3.1 billion. Tron, World Liberty Financial, and Ethena each exceed $1 billion.

This activity marks the next phase of institutional adoption: diversification within the cryptocurrency sector itself. Treasury allocations that began with bitcoin are being extended to other assets. For some corporations, the assets function as reserves; for others, they serve as strategic positions tied to ecosystem partnerships or product launches.

The growth of these vehicles has also revealed a market hierarchy. A handful of firms now dominate trading activity within the “digital asset treasury” segment, while smaller entrants face pressure as market NAVs drift below parity.

Benchmarks and Structure

The use of benchmarks has become central to this market shift. CoinDesk 20 and CoinDesk 5 now serve as reference points for ETFs, structured notes, and derivatives. Their methodology, based on liquidity, exchange coverage, and accessibility, aligns with the standards that institutional investors expect from traditional indices.

The SEC’s approval of generic listing standards for crypto ETPs is likely to accelerate this trend. Multi-asset and staking-based ETFs are expected to follow, providing allocators with new tools to manage exposure across a broader range of digital assets.

The Path Ahead

Historically, Q4 has been bitcoin’s strongest quarter, averaging 79% since 2013. With monetary policy easing and balance-sheet adoption continuing, conditions favor risk-on behavior. Yet the composition of that risk is continuously changing.

Crypto is no longer a single-asset decision. It’s evolving into a structured, multi-asset allocation space supported by corporate participation and regulated product access. For advisors, the market is beginning to reflect sustained institutional capital flows, a sign of an asset class moving steadfastly toward maturity.

— Joshua De Vos, research lead, CoinDesk

Ask an Expert

What are the top 3 things advisors should know when it comes to crypto?

1. Digital assets are growing, not going away. Major banks like Goldman Sachs are writing articles on why digital asset adoption is accelerating. In a revised forecast, Citi projects that the stablecoin market could reach over $4 trillion by 2030. And on Sept. 17, 2025, the SEC introduced generic listing standards for crypto ETFs, opening the gates to a wide range of products. Ahead of these expected product launches, US-listed crypto ETFs and ETPs drew $4.73 billion in net inflows in September, with ADV topping $542 billion, AUM reaching $194 billion, according to TrackInsight. Education and understanding digital assets is pivotal as this asset class grows.
2. Say it with me, “Bitcoin is only the beginning.” Bitcoin now accounts for approximately 59% of total market capitalization and there were times bitcoin was less than 40% of the market. One asset should not be a benchmark for the entire asset class. Diversification is key to potentially manage volatility and capture broader opportunities.
3. Broad-based benchmarks exist in crypto. The CoinDesk 20 Index captures the performance of top digital assets and the CoinDesk 5 Index tracks the performance of the five largest constituents of the CoinDesk 20. CoinDesk 20 is highly liquid, generating over $15 billion in total trading volume since January 2024 and is available in twenty investment vehicles globally. CoinDesk 5 underlies the first US multi-crypto ETP, the Grayscale CoinDesk Crypto 5 ETF (GDLC). CoinDesk Indices offers hundreds of BMR-compliant indices to measure, invest and trade in the ever-expanding crypto universe.

— Kim Klemballa, head of marketing, CoinDesk Indices & Data

Keep Reading

• Morgan Stanley’s Global Investment Committee (GIC) recommends an allocation of up to 4% of portfolios to cryptocurrency.
• Bitcoin reached a new all-time high of $125,835.92 after climbing above $125,000 for the first time on Sunday.
• Meanwhile, the first regulated bitcoin life insurer has raised $82 million for expansion.