TLDR
- Goldman Sachs stated that clearer regulation is accelerating institutional adoption of crypto.
- The bank reported that bitcoin ETFs reached $115 billion in assets by the end of 2025.
- Ether ETFs also grew rapidly and crossed $20 billion in total assets.
- Goldman Sachs highlighted that 71 percent of institutions plan to increase crypto exposure.
- Regulatory clarity was identified as the top catalyst for crypto adoption among surveyed institutions.
Goldman Sachs says clearer regulation and new use cases beyond trading are accelerating institutional adoption of crypto assets and infrastructure. The bank released a report Monday highlighting policy shifts and increasing demand from hedge funds, asset managers, and banks. Analysts expect U.S. legislation to act as a catalyst for more capital inflows.
Bitcoin ETFs Fuel Institutional Demand
Bitcoin ETFs have attracted substantial institutional interest since regulators approved them in 2024, according to Goldman Sachs’ latest survey report. Assets in Bitcoin ETFs reached $115 billion by the end of 2025, showing rapid institutional growth and mainstream acceptance. Hedge funds increased participation and signaled plans for higher allocations throughout 2026.
The bank said traditional investment firms view ETFs as familiar vehicles to gain crypto exposure with lower custody risks and more oversight. This trend aligns with survey results showing 71% of institutional investors plan to boost crypto exposure in the coming year. While current allocations remain low at 7%, rising interest supports future inflows.
“Regulatory clarity is the top catalyst for institutional adoption,” analysts led by James Yaro wrote in the report. Around 32% of surveyed institutions cited clarity as the primary driver. By contrast, 35% still view uncertainty as the top hurdle blocking adoption.
Ether ETFs and Stablecoins Gain Momentum
Ether ETFs also expanded quickly, surpassing $20 billion in assets by year-end 2025 as institutional appetite widened. The bank noted rising investor confidence in Ethereum-based products as smart contract use cases increase. These include DeFi, tokenization, and on-chain finance projects targeting long-term yield opportunities.
Stablecoins also benefited from stronger rules passed in 2025, which set clear oversight and reserve requirements. Market capitalization grew to nearly $300 billion as institutions gained confidence in issuance and custody. Analysts said these frameworks reduced legal risks and enabled broader integration in payments and settlement networks.
Goldman Sachs highlighted that clearer legislation opened doors for traditional finance players to re-enter the market. Revised custody rules and new charters for digital-asset banks helped lower engagement barriers. These steps, the bank said, align with ongoing institutional interest in blockchain-based financial infrastructure.
Goldman Sachs Sees Crypto Legislation Ahead
Goldman Sachs pointed to upcoming U.S. crypto market structure bills as a potential turning point for the industry. These proposals aim to define how digital assets, DeFi, and tokenized products are regulated. The bank expects progress in the first half of 2026, before midterm elections.
The report also cited changes in SEC leadership under President Donald Trump as a regulatory shift. Paul Atkins, confirmed as SEC chair, rolled back aggressive enforcement actions and closed multiple pending crypto cases. These policy reversals created a more favorable environment for crypto innovation and capital markets involvement.
Goldman said bipartisan congressional support is increasing for legislation to split roles between the SEC and the Commodity Futures Trading Commission. These efforts could bring long-awaited clarity for asset managers and financial firms entering the space. Analysts emphasized that legal certainty would unlock new institutional flows.
Grayscale also reported in December that regulatory structure would be the dominant force shaping crypto’s path in 2026. The asset manager said a bipartisan bill remains likely within the next year. Goldman Sachs shares that outlook and expects continued momentum across infrastructure, trading, and decentralized platforms.
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