PARIS, Nov 20 (Reuters) – Cryptocurrency markets have boomed in recent years, fueled in part by the Trump administration’s pro-crypto stance, which has encouraged greater acceptance among financial institutions.
With a total value of $3.2 trillion and a trading volume of around $197 billion per day, cryptocurrencies represent a small portion of global markets, estimates crypto tracker CoinGecko.
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But regulators and investors still worry about whether problems in the lightly regulated crypto world could spill over into the financial system as a whole.
Bitcoin generally moves in line with a broader risk appetite. Its correlation with the S&P 500 on a rolling monthly basis this week was 0.84, its strongest in six weeks, according to LSEG data. Correlation is measured from -1 to 1.
This is where the crypto markets and mainstream markets intersect.
STABLECOIN RESERVES
Stablecoins are cryptocurrencies tied to a real-world currency, usually the US dollar. Stablecoin issuers hold reserves corresponding to the number of tokens they have created and claim that token holders can exchange their stablecoins for dollars on demand.
The stablecoin market is dominated by El Salvador-based Tether, which has approximately $181 billion in reserves, of which $112 billion is held in U.S. Treasuries. Rival Circle holds $24 billion in U.S. Treasuries.
CRYPTO-RELATED ACTIONS
Crypto stocks soared in 2025 and more crypto companies went public. But pure players remain a tiny part of the overall market.
The market capitalization of stocks in the “blockchain and cryptocurrency” and “cryptocurrency mining” categories is $225 billion, or only 1.8% of the global stock market, according to LSEG data.
Standard Chartered estimates that a bitcoin price below $90,000 leaves half of these companies’ treasuries holding bitcoin worth less than what they paid to acquire it.
Four of the 173 new public listings in the United States in 2025 were crypto companies, raising a total of $1.2 billion, or about 3.3% of the total funds raised through IPOs in the United States, LSEG said.
BANK EXPOSURE TO CRYPTO
Banks gain exposure to the crypto world by taking on crypto-related clients, holding stablecoin reserves, or offering crypto-related services such as asset custody.
Some smaller banks specialize in crypto, concentrating risk, as seen in 2023 when US crypto-focused bank Silvergate Capital collapsed after customers withdrew their deposits.
Data on bank exposure is hard to find, but what is available suggests it is modest but growing.
The European Central Bank said in a May study that major eurozone institutions provided €4.7 billion worth of crypto asset custody services in 2024, up from €400 million in 2023.
Data from the Basel Committee on Banking Supervision shows prudential exposure to cryptocurrencies worth €5.9 billion in the second half of 2024, among banks in countries that voluntarily provided data.
CRYPTO INVESTMENT FUNDS
The number of digital asset exchange-traded products globally jumped to 367 in 2025, from 104 in 2021, according to data from Morningstar Direct.
Still, with $222.3 billion in assets under management, crypto ETPs are tiny compared to the $17.4 trillion managed by non-crypto ETPs globally, Morningstar estimates.
Reporting by Elizabeth Howcroft; Additional reporting by Amanda Cooper; Editing by Tommy Reggiori Wilkes, Alden Bentley and Alexander Smith
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