Crypto analytics firm Glassnode released a report on June 29 titled "Diversification Beyond Digital Assets" that examines the potential for digital assets to converge with traditional finance, CoinPost reported.

Glassnode said the turnover of bitcoin (BTC) holders that has continued since the second half of 2025 is clearly visible in on-chain signals. It said long-term holders sold during the 2025 BTC price upswing, with supply moving to new market participants, and that the scale of this supply transfer is the largest on record. It added that the trend became more pronounced during the first-quarter 2026 correction.

It said analysis of crypto asset and stablecoin data shows investment funds have not left the market but remain on standby. As early investors took profits, traditional investors such as institutions and companies emerged as new buyers, it said, adding that the wealth cycle has entered a mature phase.

■ "Structural opportunity" for private banks

Glassnode said the holder turnover coincides with the period when private banks, which manage assets for high-net-worth individuals, began to become more actively involved in digital assets. It said even wealthy investors who have already taken profits have not fully stopped investing in crypto assets, but want to diversify into stocks and bonds and manage liquidity, calling this a structural opportunity for private banks and wealth managers.

It projected that if financial institutions take a more open approach to crypto-native clients, new funds could flow back into the digital asset market. It also said the demand base from institutions and companies that absorbed the record selling by long-term holders could be strengthened further.

■ Operational infrastructure remains a challenge

Glassnode said private banks face operational challenges if they are to broadly accept crypto clients. Efficient asset transfers between digital assets and banking systems depend on securing transparent, auditable asset histories, it said, adding that existing private bank systems were not designed with clients whose histories remain on public ledgers in mind. As a result, it said, even legitimate crypto asset holders face friction such as repeated document submissions and procedural delays during source-of-funds checks.

Glassnode said it set up compliance and investor registration specialist Cense as a spinout in 2023 to address these issues. Cense is currently operating as an independent crypto asset intelligence partner connecting digital asset holders with large retail and private banks.

Michiel Hogenboom (미힐 호헨봄), Cense's chief commercial officer, said, "The market will continue to be volatile, but the structural advantage that comes from preparing proactively does not change." He added, "Companies that invest now in building a transparent crypto asset response framework will be best positioned when the market accelerates again." He added that some European banks, including the large Dutch private bank Van Lanschot Kempen, have already taken such steps.

Glassnode concluded that over the next several years crypto assets and traditional finance are likely to move toward convergence rather than competition. It forecast a structure in which wealthy investors diversify across crypto assets, stocks, bonds and cash, while institutions and companies also move funds flexibly between the two markets.