Encryption Assets and Concept Stocks: New Value Reconstruction Led by Institutions

In the first half of 2025, the global encryption asset market experienced a significant shift from being driven by retail investors to being dominated by institutions. Bitcoin reached a new annual high of $110,000 on May 22, as large-scale institutional funding propelled encryption assets to transform from speculative products into asset allocation tools. Against this backdrop, encryption concept stocks are ushering in new investment opportunities.

In the US stock market, the stock price of a certain trading platform oscillated at a high level, reaching a maximum of $271.95 on May 22. A stablecoin company triggered multiple circuit breakers due to a surge on its listing day, June 5, ultimately rising about 167% from its issue price. In the Hong Kong stock market, the Hong Kong "Stablecoin Ordinance" boosted the market, with many companies’ stock prices rising significantly. The A-share market was also influenced by the enthusiastic market atmosphere, with several individual stocks performing outstandingly.

Overall, the rise in cryptocurrency asset prices from late May to early June has become an important driving force for the performance of the cryptocurrency concept stock market, marking a new phase in which investment is entering institutionalization, compliance, and value reconstruction. Investors have higher expectations for the transition of cryptocurrency asset investment to stock investment.

The Resonance Logic of Cryptocurrency Assets and Cryptocurrency Concept Stocks

The main reasons for the outstanding performance of encryption assets in recent times are as follows:

First, the institutional control and capital concentration effect are significant. In May 2025, Bitcoin reached its annual high, and on-chain data shows a substantial increase in the proportion of Bitcoin held by institutions. Several asset management giants have raised billions of dollars in funds through spot ETFs, marking the official inclusion of Bitcoin into global asset allocation models.

Secondly, the Ethereum ecosystem is rapidly expanding, with Layer 2 transactions accounting for over 60%, and the total locked value (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 a "100% USD/Treasury reserve" requirement, driving the market capitalization of mainstream stablecoins to surpass $280 billion. The Hong Kong "Stablecoin Regulation" has been implemented, directly serving cross-border payments and supply chain finance scenarios.

These factors together have driven up the prices of encryption assets and also boosted the stock performance of related listed companies.

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

With the booming market for encryption assets, encryption concept stocks have also ushered in an investment craze.

In the US stock market, the stock prices of several cryptocurrency-related companies have performed strongly. A certain trading platform maintained high fluctuations from the end of May to the beginning of June, reaching a peak of $271.95 on May 22. Several mining companies also maintained stable stock prices. A certain stablecoin company went public on June 5, with its stock price soaring by 167% on the first day, becoming the market focus.

In the Hong Kong stock market, driven by the positive impact of the upcoming implementation of the Hong Kong "Stablecoin Regulation," stablecoins and encryption concept stocks have performed strongly. Several companies' stock prices have seen significant increases in a short period, with growth rates ranging from 10% to 80%.

In the A-share market, the digital currency and encryption security sectors are active. Multiple individual stocks experienced varying degrees of increase from the end of May to the beginning of June, showing overall steady performance.

Three Major Drivers of Value Reconstruction: Compliance, Institutionalization, and Technological Innovation

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

First, compliance has become the cornerstone of industry development. In 2025, major global economies accelerated the improvement of regulatory frameworks. Regions such as the United States, the European Union, and Hong Kong have successively introduced relevant legislation, enhancing market transparency and security, which has also brought about a "license premium".

Secondly, the continuous influx of institutional funds has reshaped the market pricing mechanism. Institutional investors are incorporating encryption assets into their long-term asset allocation, driving the market from retail speculation to rational investment.

Finally, technological innovation injects new momentum into industry development. Traditional financial institutions are actively exploring the application of blockchain technology, launching on-chain gold tokens and bond platforms to enhance asset digitization and trading efficiency.

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 Differentiation, Scenario 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. Regions such as the United States, the European Union, and Hong Kong have different focuses in regulation, and this regulatory divergence has driven up the value of compliance licenses while also creating cross-regional compliance arbitrage opportunities.

The concentration of the industry will further increase, licensed institutions will control the majority of market share, and compliance qualifications will become the core threshold for the survival and development of enterprises.

In terms of asset digitization and scenario implementation, Real World Assets (RWA) are becoming an important bridge connecting traditional finance and digital finance. Fields such as real estate, carbon credits, and supply chain finance will be the main implementation scenarios.

At the enterprise level, cases of digital asset allocation are increasing. Some companies have launched large-scale digital asset purchasing programs, treating them as important value reserves and exploring their potential in the digital economy.

Conclusion: Value Anchoring in the New Paradigm

Institutionalized non-cyclical bubbles of encryption assets are a systemic acceptance of the "decentralized trust mechanism" by the global financial system. From cryptocurrency investments to related stock investments, the investment logic evolves from zero-sum games to value symbiosis. Compliance constitutes the survival baseline of enterprises, technology determines the growth slope, and the landing of scenarios shapes the valuation ceiling.

The policy dividends of Hong Kong stocks, the business transformation of U.S. stocks, and the technological breakthroughs in A-shares together constitute a sample for the reconstruction of the market valuation system. In the future, core opportunities will no longer be short-term price games, but rather the excavation of "encryption value creators" that transcend cycles, focusing on compliance barriers, technological depth, and scenario embedding capabilities. This new paradigm signals the beginning of a new era of deep integration between digital finance and traditional finance.