Former Goldman Exec: Traditional Finance Embracing Crypto Amid Regulatory Clarity and Institutional Growth
The increasing flow of traditional capital into the cryptocurrency space comes as no surprise, according to Hong Yea, former Executive Director at Goldman Sachs. He believes recent developments in the digital asset sector are drawing institutional investors eager to diversify their portfolios.
Bitcoin-focused exchange-traded funds (ETFs) have attracted significant interest from Wall Street, with $35 billion flowing in during 2024 and another $50 billion added so far this year, according to Forbes.
Among the standout performers is BlackRock’s iShares Bitcoin Trust (NYSE: BLK), which has delivered a return of over 25% year-to-date. Launched in January 2024, the fund has already amassed more than $86 billion in assets, a level that took SPDR Gold Shares (NYSE: GLD) 15 years to achieve, Forbes noted.
Speaking to Investing.com, Yea, now CEO of peer-to-peer finance platform Grvt, said that institutional enthusiasm has also been fueled by President Donald Trump’s vocal support for the crypto space — including his family’s promotion of their own controversial memecoin, $TRUMP. Despite once being critical of digital assets, Trump has actively courted the crypto community since his successful presidential bid last year.
Institutional Momentum and Global Adoption
Yea highlighted that sovereign wealth funds and public pensions, from Abu Dhabi to Wisconsin, have disclosed investments in Bitcoin ETFs. Simultaneously, major crypto firms are going public or preparing IPOs, signaling greater integration with traditional financial markets.
Adding to this momentum, the U.S. House of Representatives recently passed key crypto legislation with bipartisan support. A notable bill, the “GENIUS Act”, mandates that stablecoin issuers maintain high-quality, dollar-backed reserves, undergo regular audits, and be subject to state and federal oversight.
Yea described the bill as a “critical signal” of the industry’s shift toward more defined regulatory frameworks, which is encouraging further inflows from institutional investors.
“It’s no surprise that traditional money continues to enter the digital asset space,” he said.
Beyond the U.S., international crypto hubs such as the UAE and Hong Kong are pushing forward with their own digital asset agendas, contributing to global adoption trends.
Bitcoin Retreats After Rally
Meanwhile, Bitcoin edged lower on Tuesday, leading a broader pullback in cryptocurrency prices as investors took profits following a sharp two-week rally.
Bitcoin recently soared to record highs above $123,000, fueled by optimism around U.S. regulatory developments and a disclosure from Trump Media & Technology Group that it holds $2 billion in crypto assets.
However, momentum appears to be waning, with Bitcoin and several altcoins retreating after recent gains. This cooling of risk appetite also reflects broader market uncertainty surrounding upcoming U.S. tariffs (set to take effect August 1) and an anticipated Federal Reserve meeting next week.
