The Future of Crypto: Optimism Amid Regulations

This column was co-written by Frank Chaparro, director of special projects at The Block, and Laura Vidiella, Head of Crypto Investor Relations for VanEck. The views expressed in this column are their own and do not reflect the opinions of their employers.

We can say with some optimism: those three famous words—we’re so back.

The winds of change appear to be shifting in a favorable direction. Trump has issued a crypto executive order aimed at paving the way for U.S. digital assets, Ross Ulbricht is free, and over the weekend in D.C., crypto had representation at nearly every major event.

Welcome to the era of Digital Financial Technology.

Since the November elections, capital allocators have started re-engaging with fund managers across various strategies, focusing notably on U.S. liquid strategies. Historically, allocators have shown more comfort with venture funds due to their regulatory environment. Now, with a more crypto-friendly administration, new opportunities are emerging.

Family offices, high-net-worth individuals, and fund-of-funds continue to hold significant roles in the allocation landscape. Likewise, pensions, endowments, and foundations are increasingly paying attention and re-entering discussions, with many institutions having at least one advocate focused on digital assets.

Crypto Insights Group has recently launched a platform connecting allocators with fund managers and published the 2025 Liquid Fund Outlook Report, which provides insights into investor expectations for the upcoming year.

The report reveals that nearly half of surveyed managers anticipate notable capital inflows starting this quarter. However, the second quarter appears a more realistic timeline due to the necessary time for due diligence and conversations. The speed largely depends on allocator type, fund tenure, track record, and strategy, with top allocators being the fastest movers due to their flexibility.

We also can’t ignore Solana’s standout moment driven by the $TRUMP memecoin launch, reported to have attracted nearly 50% of newly created wallets to engage with Solana for the first time. This raises encouraging questions about Solana’s growth trajectory and regulatory prospects.

According to the 2025 outlook by Crypto Insights Group, nearly 40% of liquid fund managers are concentrating on Solana, far ahead of other chains, driven by factors such as the Firedancer upgrade, alignment with AI themes, and its position as a foundational platform for both retail and institutional users.

The AI narrative has quickly become a significant theme in early 2025, especially at institutional events. Chris Solarz, CIO of Amitis Capital, noted during his meetings with over 300 fund managers in 2024 that AI’s relevance will dominate crypto discussions in 2025.

The crypto executive order from Trump establishes a working group to develop a regulatory framework for digital assets and explore the possible creation of a national cryptocurrency stockpile. While some excitement on crypto Twitter led to misunderstandings about establishing a strategic Bitcoin reserve fund, it does represent a positive move for the industry. Though the regulatory landscape remains uncertain for the next six to 12 months, the administration’s commitment to addressing these issues is clear. Fund managers are optimistic about what 2025 could hold for crypto as they anticipate significant trends and shifts.

The Block’s Frank Chaparro serves up the latest headlines, charts, trends, and views on crypto and DeFi from around The Block, Twitter, and The Scoop pod. Subscribe to The Scoop newsletter, which hits inboxes on Tuesday and Friday mornings.

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