On Tuesday, Bitcoin (BTC) surged to a high of $81,500, reaching its peak since January as the rally extended beyond major tokens to include tokenization-focused assets. Over the last 24 hours, the leading cryptocurrency climbed by another 2%, now registering over a 35% increase from early February lows. While Ether (ETH), XRP (XRP), and Solana (SOL) also saw gains, they did not match Bitcoin’s momentum.
Spot bitcoin ETFs are experiencing strong demand, according to Paul Howard, senior director at Wincent. The Monday session saw over $500 million flow into spot BTC funds led by BlackRock and Fidelity, indicating sustained interest from major investors.
Howard suggests that positive sentiment will likely persist unless geopolitical conditions worsen significantly.
This uptick aligns with renewed enthusiasm for tokenization, which aims to bring traditional financial assets onto blockchain. Bullish (BLSH) experienced a 12% surge following its announcement of acquiring transfer agent Equiniti for $4.2 billion, positioning it deeper in capital markets infrastructure. CoinDesk is owned by Bullish.
Owen Lau, an analyst at Clear Street, views this acquisition as a strategic shift from trading to becoming a capital market infrastructure provider, aligning with the tokenization trend. He believes the move could lead to more recurring revenue and improved margins over time, with timing being the primary concern rather than feasibility.
Galaxy Digital (GLXY) gained 3.6% after announcing a partnership with State Street for a tokenized cash-management fund targeting large investors. Other digital asset infrastructure-linked stocks also experienced gains.
Centrifuge’s native crypto (CFG), associated with tokenized real-world assets, jumped by 15%. This follows Coinbase’s decision to partner with the protocol to integrate ETFs, credit products, and other financial instruments onto blockchain platforms, highlighting growing institutional interest. Additionally, Coinbase acquired an equity stake in Centrifuge.
Tokenization appeals to investors as it rapidly grows at the intersection of blockchain technology and traditional finance. The market for tokenized assets, including stablecoins, is projected to reach $18.9 trillion by 2033, according to a forecast by Ripple and BCG.
Not all crypto stocks participated in this rally; Circle (CRCL) and Coinbase (COIN) each dropped by 3-4%, offsetting some of their Monday gains, indicating sector rotation.
The broader equity market also rose: the tech-heavy Nasdaq 100 climbed 1.2% to a new record, while the S&P 500 advanced by 0.8% during the session.