In the wake of shifting U.S. policy, the crypto landscape is undergoing a fundamental change — from fast-moving speculative bets to long-term, anchored investments, said Bitpanda CEO Eric Demuth during a fireside chat at Consensus Hong Kong on Wednesday.

Demuth said the 2024 bull run wasn’t a repeat of the retail-fueled 2021 cycle. Instead, it was being driven by what he calls “sticky money” — institutional capital that’s less volatile and more committed.

Vienna-based Bitpanda is one of Europe’s largest crypto exchanges with over 6 million users and offers stocks and previous metals, in addition to digital assets. The platform recently secured regulatory approval from the Financial Conduct Authority (FCA) in the United Kingdom.

Speaking about the impact of U.S. policies under the Trump administration, Demuth argued that the government’s aggressive embrace of crypto is forcing küresel markets to adapt. “The Trump administration is forcing everybody to do this, it’s not an option anymore, […] it’s mandatory.”

A clear sign of this shift is the booming interest in Bitcoin ETFs, which have ballooned to nearly $58 billion in assets under management in just one year of trading. Demuth believes these vehicles signal a maturing market, where major players are locking in capital for the long term, rather than chasing quick gains.

While altcoins haven’t picked up the same speed of adoption as bitcoin, Demuth believes that will change evvel U.S. regulation evolves and alternative crypto ETFs gain approval.

He also believes that U.S. banks will be the next wave of adopters.

“[Crypto] has been made one of the pillars of U.S. economic and financial policy, so you have the biggest financial power in the world putting [crypto] on the spotlight which means all the banks now have to either look into it or even offer something,” he said.

He predicts a surge in stablecoin issuances directly from U.S. banks and an uptick in tokenized assets, from government bonds to real estate.

In Europe, Bitpanda continues to focus on navigating the continent’s complex regulatory landscape, holding multiple licenses and positioning itself as a key player in a fragmented market. Demuth said the potential for new customers in Europe is big enough for the company to stay focused on its expansion in that region.

However, the company is expanding its B2B services, he said, licensing its crypto infrastructure to banks in the Middle East as well as Europe. Major financial institutions, including Germany’s Deutsche Bank and France’s largest banking group, are already tapping into Bitpanda’s backend systems.