Bitcoin climbed to $81,500 on Tuesday, extending a rally fueled by more than $500 million of inflows into spot bitcoin ETFs led by BlackRock and Fidelity.
The latest leg of the crypto rally is concentrating in tokenization plays, with shares of Bullish, Galaxy Digital, and native token of Centrifuge gaining on tokenization-related news.
Feeding that momentum is strong demand for spot bitcoin ETFs, according to Paul Howard, senior director at Wincent. More than $500 million has flowed into spot BTC funds led by BlackRock’s and Fidelity’s products on the Monday session, reflecting continued interest from large investors, he said.
The positive sentiment is likely to stay constructive unless geopolitical conditions deteriorate materially, he said.
Tokenization theme gains traction
The move coincided with renewed momentum in tokenization — the effort to bring traditional financial assets onchain.
In equities, Bullish (BLSH) surged 12% after announcing the $4.2 billion acquisition of transfer agent Equiniti, a move that positions the company deeper into capital markets infrastructure. Bullish is CoinDesk’s owner.
The deal marks a shift beyond trading, said Owen Lau, analyst at Clear Street.
“Strategically we see this acquisition as a big push to transform Bullish from a crypto exchange to a capital market infrastructure provider capturing the tokenization trend,” said Lau. He added that the move could drive more recurring revenue and stronger margins over time, with the key question being timing rather than viability.
Galaxy Digital (GLXY), which just unveiled with State Street a tokenized cash-management fund for large investors, climbed 3.6%. Other digital asset infrastructure-linked stocks also moved higher.
Among tokens, tokenized real-world asset protocol Centrifuge’s native crypto (CFG) jumped 15% after Coinbase (COIN) tapped the protocol as a partner to help bring ETFs, credit and structured products onto blockchain rails, signaling growing institutional interest in the space. Coinbase also took an equity stake in Centrifuge.
What makes tokenization compelling to investors that it’s one of the fastest-growing sector at the intersection of blockchain tech and traditional finance. The market of tokenized assets, including stablecoins, is projected to reach $18.9 trillion by 2033, according to Ripple and BCG.
Not all crypto stocks participated in the rally. Circle (CRCL) and Coinbase (COIN) slipped 3-4%%, respectively, paring some of their Monday gains, suggesting some rotation within the sector.
Meanwhile, the broader equity market also pushed higher: the tech-heavy Nasdaq 100 climbed 1.2% to a fresh record and the S&P 500 advanced 0.8% during the session.
Legacy financial systems face pressure as tokenization and real-time trading push markets toward always-on, automated infrastructure, panelists at Consensus in Miami said on Tuesday.
What to know:
Wall Street and crypto executives warn that markets are nearing a breaking point as 24/7, machine-driven trading collides with legacy systems built for slower, human-paced processes.
Blockchain-based tokenization promises real-time, continuous settlement that could keep both individual and corporate cash fully invested until the moment it is spent, reducing idle…
