The Turning Point of the Encryption Asset Market and New Opportunities for Concept Stocks

In the first half of 2025, the global encryption asset market experienced a significant shift from retail dominance to institutional dominance. On May 22, the price of Bitcoin climbed to an annual high of $110,000, largely due to a massive influx of institutional funds. This trend signifies that encryption assets are transitioning from mere speculative tools to formal asset allocation options. Against this backdrop, encryption concept stocks are ushering in new investment opportunities.

In the US stock market, the stock price of a certain trading platform oscillated at a high level, reaching a maximum of $271.95 on May 22. A stablecoin issuance company went public on June 5, and on that day, the stock price triggered a circuit breaker mechanism due to multiple surges, ultimately increasing by about 167% compared to the issuance price. In Hong Kong, the introduction of the "Stablecoin Regulation" boosted market confidence. Huaxing Capital Holdings attracted attention due to its early investment in a stablecoin company, with an intraday increase of over 14% on June 9. Other Hong Kong stocks such as Lianlian Digital, OKLink, Yika Technology, and ZhongAn Online also saw significant increases. The A-share market was similarly positively impacted, with stocks like Cuiwei Co., Ltd., Zhongke JinCai, and Hengbao Co., Ltd. performing outstandingly.

Overall, the rise in cryptocurrency asset prices from late May to early June has become an important factor driving the performance of the crypto concept stock market. This marks a new stage in investment characterized by institutionalization, compliance, and value reconstruction, with investors having higher expectations for the shift from "speculating on coins" to "speculating on stocks."

The Resonance Logic of Cryptocurrency Assets and Cryptocurrency Concept Stocks

The recent outstanding performance of encryption assets can be attributed to the following factors:

Firstly, the institutional control and capital concentration effect are significant. In May 2025, Bitcoin reached a new high for the year, and on-chain data shows that the proportion of Bitcoin held by institutions has significantly increased. Several asset management giants have absorbed billions of dollars through spot ETFs, marking the formal inclusion of Bitcoin into the global asset allocation model.

Secondly, the Ethereum ecosystem has exploded synchronously, with Layer 2 transactions accounting for over 60%, and the total locked value (TVL) surpassing $108 billion. The Cancun upgrade improved network processing efficiency, driving up the price of ETH, and the frequency of smart contract calls increased by 55% year-on-year.

In addition, the compliance process for stablecoins is accelerating, reshaping the underlying financial infrastructure. The US "GENIUS Act" establishes a "100% USD/Treasury reserve" requirement, driving the market value of mainstream stablecoins to exceed $280 billion. The Hong Kong "Stablecoin Regulation" has been implemented, directly serving cross-border payment and supply chain finance scenarios.

These factors have collectively driven the price increase of encryption assets, which has also boosted the stock performance of related listed companies.

Encryption Concept Stocks: The Industrial Coupling and Valuation Restructuring Behind Stock Price Linkage

With the booming market for encryption assets, encryption concept stocks have also ushered in an investment frenzy.

In the US stock market, a certain trading platform maintained high fluctuations from late May to early June, reaching a maximum of $271.95 on May 22. Mining company Marathon Digital Holdings' stock price stabilizes in the range of $15.5 to $16, while Riot Platforms remains in the range of $4.5 to $5. A stablecoin issuing company was listed on June 5, with its stock price skyrocketing by 167% on the first day, becoming the market focus. Mining and blockchain stocks such as Bitfarms and HIVE Blockchain also showed varying degrees of increase.

In the Hong Kong stock market, influenced by the upcoming implementation of the Hong Kong "Stablecoin Regulation", stablecoins and encryption concept stocks performed strongly. Huaxing Capital Holdings rose more than 14% in early trading on June 9, closing up over 10%, due to its early investment in a stablecoin company gaining attention. Lianlian Digital surged nearly 80% during trading on June 2; OKChain rose over 41%; Yika Technology climbed nearly 40%; ZhongAn Online increased by 31.56% in a single day on May 29, with a cumulative increase of over 70% in the past five trading days. Lianyirong Technology, JD.com, and China Everbright Holdings also followed suit, with increases mostly between 5%-12%.

The A-share market, digital currency, and encryption security sectors are active. Cuiwei Co., Ltd. rose by 10.04% on June 3; Zhongke Jin Cai hit the daily limit on June 5; Hengbao Co., Ltd. had an intraday increase of 4.36% on June 9, with a cumulative increase of nearly 30% over the past five days; Yasheng Optoelectronics rose by about 4.6% from late May to early June. Overall, the A-share related targets are performing steadily, driven by policies and technology.

Three Major Drivers of Value Reconstruction: Compliance, Institutionalization, and Technological Innovation

Recently, the value of encryption assets and related stocks has significantly increased, reflecting a profound restructuring of the entire industry's value system. This transformation is mainly driven by three major forces.

First, compliance has become the cornerstone of industry development. By 2025, major global economies are accelerating the improvement of regulatory frameworks. The U.S. "GENIUS Act" requires that stablecoin reserve assets are 100% pegged to the U.S. dollar or U.S. Treasury bonds and undergo regular audits, while the EU's MiCA legislation promotes industry centralization. Hong Kong, on the other hand, has formed a unique advantage through a "dual-track" regulatory model. Compliance not only enhances market transparency and security but also brings about a "license premium," making institutional investors more inclined to choose compliant platforms, leading to more stable and continuous capital inflows.

Secondly, the continuous influx of institutional funds has reshaped the market pricing mechanism. Represented by a certain asset management company's Bitcoin ETF, institutional investors have incorporated encryption assets into their long-term asset allocation, with sovereign funds and corporate treasuries increasingly viewing digital assets as a tool against inflation. The institutionalization of the funding structure has strengthened the correlation effect between cryptocurrency prices and related stocks, driving the market from retail speculation to rational investment.

Finally, technological innovation injects new momentum into the development of the industry. Traditional financial institutions are actively exploring the application of blockchain technology, launching on-chain gold tokens and bond platforms to enhance asset digitization and trading efficiency. The advancement of technology not only optimizes the infrastructure but also endows encryption-related companies with more "hard tech" attributes, driving the market valuation logic to shift from purely financial attributes to technological innovation attributes.

These three driving forces interact with each other, jointly pushing cryptocurrency assets and their related stocks into a more mature, compliant, and technology-driven new era, where the value assessment system is achieving a qualitative leap.

Regulatory Divergence, Scenario Implementation, and Investment Paradigm Shift

As the global encryption asset market matures, the regulatory environment will present a more differentiated and refined pattern in 2026 and beyond. The US SEC plans to launch encryption asset custody licenses, the EU is strengthening anti-money laundering (AML) and customer identity verification (KYC) rules, and Hong Kong is accelerating the construction of a digital asset hub, actively attracting compliant encryption companies to settle. This regulatory difference not only enhances the value of compliant licenses but also gives rise to cross-regional compliance arbitrage opportunities, making companies with compliance qualifications in multiple locations the preferred choice for institutional capital migration.

The concentration of the industry will further increase, and licensed institutions will control most of the market share. Compliance qualifications will become the core threshold for the survival and development of enterprises, building a strong institutional moat to gain the favor of long-term capital.

In terms of asset digitization and scenario implementation, Real World Assets (RWA) are becoming an important bridge connecting traditional finance and digital finance. It is predicted that in the coming years, the global RWA market size will exceed hundreds of billions of dollars, with real estate, carbon credits, and supply chain finance being the main implementation scenarios. The application of blockchain technology has accelerated the improvement of asset securitization and circulation efficiency.

At the corporate level, the cases of digital asset allocation are increasing. Taking the Hong Kong-based cooking platform "日日煮" as an example, its parent company has initiated a large-scale Bitcoin purchasing plan, aiming to accumulate 5,000 Bitcoins within three years, with the goal of treating digital assets as an important value reserve and exploring their potential in the digital economy. This practice of incorporating digital assets into the corporate balance sheet marks a shift in the investment paradigm from pure price speculation to asset diversification allocation and value symbiosis.

Overall, the continuous improvement and differentiation of regulation, the ongoing implementation of digital asset scenarios, and the upgrade of investment philosophies among institutions and enterprises are collectively driving the cryptocurrency assets and related stock markets into a more mature, compliant, and value-driven new stage. Investors should focus on "encryption value creators" that possess compliance advantages, technological innovation, and scenario application capabilities, seizing long-term investment opportunities that transcend cycles.

Conclusion: Value Anchoring in the New Paradigm

Institutionalization of encryption assets is not a periodic bubble, but rather the systemic acceptance of the "decentralized trust mechanism" by the global financial system. From "speculating on coins" to "speculating on stocks", the investment logic has evolved from a zero-sum game to value symbiosis. Compliance constitutes the survival bottom line for enterprises, technology determines the growth slope, and scenario implementation shapes the valuation ceiling.

The policy dividends of Hong Kong stocks, the business transformation of US stocks, and the technological breakthroughs of A-shares together form a sample for the reconstruction of the market valuation system. The core opportunities in the future will no longer be short-term price games, but rather the exploration of "encryption value creators" that transcend cycles, focusing on compliance barriers, technological depth, and scene embedding capabilities. This new paradigm indicates that a new era of deep integration between digital finance and traditional finance has already begun.