Wall Street's Onchain Turn: Institutional Investors Embracing Crypto

Institutional investors are increasingly including digital assets in their core portfolio construction, according to Fidelity. The company's executive outlined a 60/20/20 allocation that includes crypto, indicating a significant shift in how Wall Street firms view and manage these assets.

Arthur Hayes framed the move as part of a broader debate about money printing, with Wall Street firms deploying onchain infrastructure to support their operations. This development is likely to impact October price action, with traders monitoring macro data, liquidity conditions, and institutional flow events that could determine whether Bitcoin's next move is driven by reserve-asset demand or retail momentum.

Network activity and infrastructure development suggest continued buildout of execution and privacy layers. Solana processed 14.2 billion non-voting transactions in the third quarter, a 45% increase from the prior quarter, while the Ethereum Foundation launched zkAPI to separate AI payments from user identity.