Wall Street is heavily investing in cryptocurrencies beyond Bitcoin, including Ethereum and Solana. Public companies hold over $100 billion in Ethereum and $10 billion in other digital currencies. Institutional investors prioritize tokens with strong fundamentals, yield potential, and utility.
Wall Street's enthusiasm for crypto extends far beyond Bitcoin, with public companies and hedge funds diversifying into Ethereum, Solana, and other altcoins. Publicly traded firms hold more than $100 billion in Ethereum and $10 billion in other digital currencies, rapidly acquiring more to tap into upside potential, yield opportunities, and utility beyond mere store-of-value.
With over 37 million unique cryptocurrency tokens existing, selecting worthwhile investments is challenging. Savvy asset managers focus on tokens boasting strong fundamentals, high yield potential, and clear utility. They seek ample liquidity for large trades without market disruption, sensible tokenomics that avoid inflation and link value to network usage, regulatory clarity, and established custody processes.
Institutional buyers also assess blockchains for longevity, including an active developer base, mature governance, enterprise-grade security, and incentives for developers and infrastructure providers. For income, many shift to assets with near-term staking rewards over price appreciation. Solana stands out for its deep markets and straightforward staking, enabling yield on a high-throughput network. Recent actions by firms such as BitGo, BIT Mining, and Upexi highlight a rush to accumulate and stake SOL.
Some managers view crypto not as mere financial tools for arbitrage but as foundational infrastructure akin to the internet in 1995. They bet on protocols for applications in payments, AI, data marketplaces, and on-chain finance. For example, Avalanche (AVAX) appeals with its modular “appchain” architecture, favored by institutions and brands like Visa, FIFA, and Konomi for custom mini-blockchains. Similarly, TON benefits from integration with Telegram's billion-user base, potentially driving mini in-chat apps.
As institutional capital dominates, liquidity, yield, and product-market fit will shape protocol development. Today's allocations by asset managers will influence which ecosystems thrive long-term, with funded projects gaining advantages while others risk irrelevance. Budd White, Chief Strategy Officer of Avalanche Treasury Company, warns that builders must align with institutional priorities without losing crypto's core strengths.