Fund managers are increasingly migrating traditional assets on-chain via tokenisation, according to Crypto.com, while almost all family offices say they are adapting to include digital assets in portfolios.

With tokenised money market funds and other real-world assets already gaining traction, the evolution promises simpler access, enhanced liquidity and the prospect of private market investments following the same path.

“We expect tokenised funds to be a significant growth area for the Australian investment landscape over the next few years and we are already seeing more tokenised investments including money market funds becoming available,” general manager for Australia, Vakul Talwar, told Investor Daily.

“These tokenised real-world assets provide easier access to traditional investments and with greater liquidity, as they can be bought and sold as required. These benefits are likely to encourage fund managers to issue tokenised versions of more illiquid investments, such as private market assets.”

The push toward tokenisation comes as fresh data shows crypto’s advance into the mainstream is accelerating. Global ownership climbed 12.5 per cent in 2025 to 741 million users, as regulatory clarity and institutional participation continue to reshape the sector’s foundations.

Institutional investors are increasingly viewing crypto less as a fringe speculative play and more as a structural component of a diversified portfolio, according to Crypto.com’s annual market sizing report.

“This change is being driven by better regulation, improved market infrastructure and the entry of conservative incumbents such as major asset managers and custodians into the crypto mix,” Talwar said.

The report found January, March and September 2025 recorded comparatively strong monthly growth of 3.4 per cent, 1.2 per cent and 1.9 per cent respectively.

“This coincided with the start of Trump’s second term and his pro-crypto policies, as well as the hype of DAT strategies among public companies.”

Bitcoin ownership rose 8.3 per cent in 2025, increasing from 337 million in 2024 to 365 million in 2025. Ethereum led adoption growth for most of the year, with holders jumping 22.6 per cent from 142 million to 175 million, driven largely by digital asset treasury (DAT) strategies and the expansion of real-world asset (RWA) tokenisation.

“In March, BTC experienced notable growth, largely driven by Trump’s Executive Order to establish a Strategic Bitcoin Reserve and a Digital Asset Stockpile, positioning BTC as a strategic asset in the US. This historic decision marked the first instance of a major nation formally recognising BTC as a strategic reserve asset, akin to traditional assets like gold. It has been widely viewed as a strong endorsement of cryptocurrency, boosting confidence among investors and institutions.”

The report also estimates between 300,000 and 1.2 million people may hold bitcoin via US spot ETFs.
“Based on US Securities and Exchange Commission (SEC) Form 13-F filings, total funds invested in BTC and ETH ETFs reached US$11.8 billion and US$42.3 million by 18 July 2025, respectively,” the report said.

Talwar noted that conversations are under way in multiple jurisdictions about establishing bitcoin and broader digital asset reserves.

“We think it’s inevitable that most nations will eventually include Bitcoin and additional digital assets into their treasury and reserve and this will progress further in 2026. It will most certainly encourage growth and adoption, cementing further confidence in the digital assets industry and its key role in the future financial ecosystem.”

Broadening investor access

Crypto.com’s research also found investment advisers, banks and brokerages collectively hold US$4.5 billion in crypto assets. “These institutions could potentially provide the ETFs to their retail clients, whose average BTC balance was estimated to be between US$3,500 and US$15,000 based on on-chain data. Therefore, there could be approximately 300,000 to 1.3 million people invested in BTC and ETH via ETFs.”

With spot bitcoin ETFs, licensed custody solutions and clearer regulatory pathways emerging, Talwar said crypto is becoming easier to integrate within Australian fiduciary structures.

“As we look to the future, digital assets will be increasingly framed as a modest allocation within the alternatives bucket, valued for diversification benefits rather than short term speculation.”

From policy shifts in Washington to impending legislation in Australia, digital assets are increasingly being treated not as speculative trades but as legitimate portfolio allocations, with advisers, super funds and global asset managers preparing to follow.

Talwar said regulation would deliver clarity, certainty and stronger confidence for Australia’s digital asset market.

“We expect regulation to have the most impact on financial advisers and institutional investors, as it will make it easier for them to allocate money under their investment frameworks and guidelines. Regulation is likely to be the catalyst for many advisers and larger institutional investors, like superfunds, who have been wanting to allocate to crypto to now do so.”

In the US, Congress is pushing to pass the CLARITY Act. After clearing the House in July 2025, the bill stalled in the Senate, with key hearings postponed until early 2026, leaving further legislative progress and potential passage likely next year.

The legislation seeks to establish comprehensive federal oversight of digital assets, defining “digital commodities” and setting clearer rules for market participants.

“By providing clear rules on which digital assets are securities and which are commodities, it will reduce uncertainty for investors and market operators. We expect this will encourage more institutional investment and support growth in regulated digital asset trading and the infrastructure that supports it. Overall, the Act supports stability and longer-term market confidence,” Talwar told Investor Daily.

Separate research suggests family offices are also steadily lifting their exposure to digital assets, with most now viewing the asset class as a permanent feature of the investment landscape.

Ocorian, a specialist provider of services to high-net-worth (HNW) individuals, family offices, financial institutions and asset managers, found 78 per cent of family offices have increased the level or value of digital assets held over the past five years.

The study surveyed family members, senior family office executives and intermediaries representing total wealth of US$68.2 billion. Of those polled, 15 per cent said their digital asset holdings had increased significantly, while 18 per cent reported no change. Just 3 per cent said their exposure had fallen.

Professional advisers are also responding to demand, with nearly all (96 per cent) family offices saying their intermediaries are adapting services to support growing allocations to digital assets.