Top 10 Crypto & Digital Asset Trends – Henrik Andersson, Apollo Crypto

Date: 08 Oct 2025

Karen Jones

This week’s Top 10 Crypto & Digital Asset Trends is from Henrik Andersson, Chief Investment Officer at Apollo Crypto.

What’s your current assessment of the digital asset market, and how is macroeconomic or regulatory uncertainty affecting sentiment among private wealth clients?

The digital asset market is experiencing a positive backdrop driven by a couple of factors. Firstly, increasing regulatory clarity in the US. Notably the ‘Genius Act’ which regulates stablecoins was adopted earlier this year. We expect a ‘Market Clarity Act’ before the end of this year which will further strengthen the regulatory environment around this emerging asset class. Secondly we are seeing real world adoption not just of Bitcoin but also of stablecoins as a new payment rail as well as tokenisation of assets like funds and stocks.

How are recent policy changes in the U.S., EU, or Asia influencing crypto adoption or caution in the private client space?

Recent policy changes across major markets are gradually making crypto more accessible for private wealth clients while still leaving areas of caution. In the U.S., the approval of spot Bitcoin and Ethereum ETFs and progress toward clearer regulatory frameworks have lowered barriers, though tax complexity and shifting SEC guidance still create uncertainty. The EU’s MiCA framework is bringing standardized rules for custody, stablecoins, and distribution, giving private banks a clearer path to offer crypto products, albeit with phased implementation. In Asia, hubs like Hong Kong and Singapore are leading with regulated ETFs and stablecoin rules, while South Korea and Japan have introduced investor protection and tax reforms to support adoption. Overall, clearer rules and familiar investment vehicles are encouraging private clients to explore crypto, but uneven global policies mean wealth managers must proceed carefully.

What role are digital assets currently playing in the portfolios of HNWIs and family offices — speculative, hedging, or strategic?

The integration of digital assets in today’s world reflects a maturation from predominantly speculative bets to multifaceted roles in hedging and strategic allocations. This evolution is underpinned by regulatory progress (eg. US spot ETF approvals and EU MiCA implementation), enhanced the custodial infrastructure, and empirical evidence of diversification benefits. Recent surveys highlight a steady uptick in exposure, with family offices leading HNWI adoption due to their flexibility in alternative investments.

How are wealth managers integrating crypto and blockchain-based products into diversified portfolios for their clients?

Right now the appetite for exposure is mostly coming from those with independence in the form of internal investment committees and regulated entities. Mainly, uptake has been speculative and generally client directed with the wealth manager’s role largely confined to allocation sizing depending on the vehicle chosen by the client. Generally speaking, we are seeing up to 5% allocations when choosing directional strategies and higher on market neutral offerings. There is much research showing the positive impact on risk-adjusted returns that sub 5% allocations have had (historically) on traditional (60/40) portfolios.

Are there specific tokens, protocols, or segments (DeFi, stablecoins, real-world assets) that you see gaining traction among private investors in 2025?

Bitcoin, DeFi and Tokenisation of yield products have been on the frontfront of private investors interest in 2025.

How do you see the evolution of ESG frameworks and sustainability intersecting with blockchain and digital assets?

The evolution of ESG frameworks and blockchain is a natural convergence: ESG demands trustworthy, verifiable data and scalable solutions, which blockchain can offer. Blockchains create tamper-proof, auditable records on-chain, which can be used to track everything from a company’s carbon emissions to labor practices in global supply chains. Additionally, “Green” bonds, renewable energy projects, or sustainable infrastructure can be tokenized, allowing smaller investors to buy fractional shares of assets that were once reserved for large institutions. Carbon markets can be digitized, creating global, interoperable platforms for trading offsets. On-chain data provides an immutable record of ESG metrics, simplifying audits and reporting to regulators and clients. This is especially valuable for private assets where ESG disclosures have traditionally lagged behind public markets. For private wealth managers, this creates a compelling opportunity: portfolios that are not only financially sound, but also provably aligned with ESG principles.

What are the key risks private clients should be aware of in crypto markets — and how can advisors mitigate them?

To an extent, the most widely discussed risk (volatility) is really where the opportunity lies here but again that is a “position sizing” discussion for wealth managers to have with their clients. The main risk that we see is clients going direct, choosing their own assets to invest in and then either storing them incorrectly or being unaware of exactly what secure handling entails. There are over 37million tokens, it is very difficult unless you understand the technology and the dynamics of this market to filter out the noise and find investable assets rather than just a “good story”.

To an extent, the most widely discussed risk (volatility) is really where the opportunity lies here but again that is a “position sizing” discussion for wealth managers to have with their clients. The main risk that we see is clients going direct, choosing their own assets to invest in and then either storing them incorrectly or being unaware of exactly what secure handling entails. There are over 37million tokens, it is very difficult unless you understand the technology and the dynamics of this market to filter out the noise and find investable assets rather than just a “good story”.

Have expectations changed in terms of custody, access, or transparency in crypto wealth management solutions?

Expectations in crypto wealth management solutions have indeed evolved significantly, particularly among high-net-worth individuals (HNWIs), family offices, and institutional investors. Driven by regulatory advancements—such as the U.S. SEC’s rescission of Staff Accounting Bulletin 121 (SAB 121) in January 2025, which removed barriers for banks to custody digital assets—and growing institutional adoption, stakeholders now demand more sophisticated, compliant, and resilient frameworks. Custody has transitioned from a primarily self-managed concern to a strategic imperative emphasizing institutional safeguards and regulatory compliance. Whilst, transparency has become a cornerstone, balancing openness with privacy amid regulatory scrutiny and investor demands for accountability.

In what ways are you seeing private banks or trustees adapting to the inclusion of digital assets in estate planning and fiduciary conversations?

Private banks and trustees are actively adapting to the inclusion of digital assets. This evolution is driven by the maturation of the digital asset market, regulatory advancements and the impending $124 trillion intergeneration wealth transfer, where next-generation clients demand tech-integrated solutions for transparency and efficiency. Adaptions focus on secure custody, tax-efficient structures, access protocols, and compliance frameworks to mitigate risks like key loss volatility, and litigation. Fiduciaries, including corporate trustees at private banks, are updating duties to encompass digital asset management, often through partnerships with fintech providers and specialized tools, ensuring alignment with prudent investor standards

What innovations or infrastructure developments (e.g. tokenization, ETFs, compliance tools) do you believe are most important to the future of crypto in private wealth?

Recent developments like tokenization and ETFs are crucial for driving crypto asset adoption in private wealth management because they address two major barriers: accessibility and trust. Tokenization helps markets be more liquid and accessible while ETFs allow simple and compliant exposure to crypto. This creates a bridge between traditional finance and the blockchain industry. Tokenization allows high-value, illiquid assets such as stocks and bonds, private equity, and real estate to be represented by digital tokens. This makes it possible for private wealth clients to invest in assets that were previously challenging to access or were illiquid. Crypto ETFs wrap digital assets in well-understood, regulated investment vehicles, making it easier for wealth managers and family offices to allocate capital without navigating complex custody and compliance issues. This evolution transforms crypto from a niche asset class into a mainstream portfolio component, unlocking new strategies for diversification, capital appreciation, yield generation, and intergenerational wealth transfer.

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