Wall Street is experiencing a risk-on trend as it anticipates a 0.25% Fed rate cut, with investors seeking signals from Fed Chair Jerome Powell. Market expectations are centered on supportive monetary policies. Major players like FalconX and 21Shares are involved, deepening crypto integration through high-profile acquisitions. Institutional interest is growing, reflected in significant M&A activity and rising asset prices.
"We’re witnessing a land rush in crypto ETPs. With new listing standards in place, the floodgates are set to open—making this an ideal time for a deal like this." — Ophelia Snyder, Co-founder, 21Shares
The financial impact is seen in a surge of crypto M&A activity, exceeding $10 billion in Q3 2025. Institutional investors are increasingly drawn to blockchain, spurring regulatory and market innovations. Expect a shift in regulatory frameworks that supports integration, with historical trends indicating similar market expansions. Ethereum and Bitcoin benefit from institutional flows, promising growth in DeFi and ETFs.
Fed Pivots Spark Increased Crypto Participation Since 2020
This is comparable to previous "risk-on rallies" after Fed pivots in 2020-2021. Past events show intensified crypto participation through regulated products like ETFs and ETPs. Expert analysis suggests further monetary easing and market expansion, driven by historical patterns and new regulatory clarity. Analysts predict a favorable environment for major crypto assets.
"We continue to evaluate the appropriate level of support for the economy, balancing growth and price stability." — Jerome Powell, Federal Reserve Chair