Crypto Investing is Gaining Momentum: Here's What You Need to Know
Cryptocurrency has evolved from a niche digital asset to a mainstream investment and is becoming a significant component of the global financial landscape. Over 659 million people worldwide now own cryptocurrency, up 13.1% in just the past year. While headlines often focus on the volatility of the crypto market, what’s happening beneath the surface is much more telling: crypto is maturing as a foundational component of an investment portfolio.
As part of this broader trend, familiar investment products like Exchange Traded Funds (ETFs) are gaining traction, offering investors regulated and accessible avenues to participate in the crypto economy.
What Is Fueling Growth?
Even amid market fluctuations, several powerful indicators are shaping the long-term trajectory of crypto:
- User adoption is accelerating: The crypto wallet market is projected to grow at nearly 30% annually, expected to reach over USD 33 billion by 2033. Younger investors and emerging markets are leading this expansion.
- Institutional investment is scaling up: Pension funds, global banks, and major asset managers are integrating crypto into their investing strategies as a way to offer diversification, hedge against inflation, or for high-growth potential, and launching new products designed for long-term growth.
- Regulations are taking shape: The regulatory framework is constantly evolving and moving towards clarity, improving across key markets. The Canadian Investment Regulatory Organization is actively working with and encouraging feedback from industry experts on business models and has introduced frameworks that provide stronger investor protection and help legitimize the asset class.
- New investment products are gaining traction: Canada became the first country to approve a spot Bitcoin ETF in 2021, paving the way for broader access to crypto through traditional investment vehicles (Reuters). Since then, Canadian investors have increasingly turned to cryptocurrency ETFs, as well as broader cryptocurrency and blockchain funds, as a regulated and convenient way to gain exposure to the digital asset space.
- Blockchain is gaining real-world utility: The technology cryptocurrency is built on is seeing broader applications across sectors. In finance and banking, blockchain enables faster, lower-cost payments and decentralized lending. In supply chains, it offers transparency and traceability. Real estate is being transformed through tokenized, fractional ownership. And in digital identity, blockchain is helping reduce fraud and secure interactions. These aren’t speculative ideas; they’re real implementations by governments, corporations, and institutions around the world.
- Introduction of new cryptocurrencies that may be less volatile like Stablecoins: The rise of stablecoins is further evidence of how cryptocurrency is becoming more integrated into everyday financial systems. Unlike more volatile digital assets, stablecoins are designed to maintain a consistent value by being pegged to traditional currencies like the U.S. dollar or commodities such as gold.
Taken together, these trends point to a powerful shift: crypto is no longer a fringe asset class, but an evolving ecosystem with real-world utility, growing investor demand, and increasing institutional and regulatory support. As innovation accelerates and new use cases continue to emerge, the opportunity for growth — in both market adoption and investment returns — will likely continue to attract forward-looking investors and innovators eager to shape the future of finance.
Why Investors Are Paying Closer Attention
The growing adoption of cryptocurrency by institutions, the expansion of real-world use cases, and the development of regulated investment vehicles are all key drivers — but they’re only part of the story. Investors are also responding to broader macroeconomic conditions.
Rising inflation has prompted many to look for assets that can preserve purchasing power, while concerns about currency devaluation have increased interest in alternatives like Bitcoin, which has a fixed supply. In times of geopolitical uncertainty, some investors turn to assets that are decentralized and less tied to traditional markets.
At the same time, crypto has become more accessible. The introduction of ETFs and other familiar investment products, along with growing media coverage and public awareness, has made it easier for both retail and institutional investors to engage. These combined factors are turning crypto from niche speculation into serious consideration for long-term portfolio diversification.
A Smart Way In
If you’re intrigued by crypto’s growth but hesitant about the complexities of buying and storing coins yourself, Crypto ETFs offer a straightforward solution. Crypto ETFs are like regular ETFs as they are traded daily, and their price fluctuates based on the underlying investments throughout the trading day. Crypto ETFs provide exposure to digital assets but avoid some of the hassles associated with directly owning and storing crypto like private keys or navigating specialized exchanges. Plus, ETFs can be held inside registered accounts like TFSAs and FHSAs, opening the door to potential tax advantages.
Position Your Portfolio for What’s Next
As crypto moves from niche to mainstream, driven by institutional adoption, real-world applications, and increasing access through products like ETFs, it’s becoming harder to ignore. For investors who value transparency, control, and early access to emerging opportunities, crypto can represent more than just a high-risk bet. It’s a chance to participate in a system that’s still being built. With the right knowledge and tools, you can make informed choices about whether it fits into your long-term financial strategy.
Qtrade makes it easy. Qtrade puts crypto investing within your reach. Explore a broad selection of crypto ETFs, from direct Bitcoin and Ethereum exposure to diversified crypto funds and blockchain-focused opportunities. It’s a simple, transparent way to build exposure to the crypto space through trusted investment options.
Explore the featured ETFs available on Qtrade, grouped by focus and opportunity.
The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes and it is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters.