Grayscale: "If Market Structure Act Passes, $100 Trillion Wealth Transfer Will Begin"

▲ US, cryptocurrency regulation/AI generated image

With the news of the impending passage of the US cryptocurrency market structure bill (CLARITY), a $100 trillion intergenerational wealth transfer is beginning, and virtual assets are rapidly emerging as a central asset in institutional finance.

Zach Pandl, Head of Research at Grayscale, predicted in an interview with the crypto-specialized YouTube channel Paul Barron Network on April 18 (local time) that "the passage of the US cryptocurrency market structure bill will provide strong regulatory clarity to the market." Pandl stated that "careful negotiation processes among key politicians are increasing the maturity of the bill," seeing it as a signal to attract full-scale investment from traditional financial institutions such as banks and brokers. He analyzed that after the bill's passage, mergers and acquisitions of virtual asset-related companies between fintech firms and large financial institutions would explosively increase.

The traditional financial sector is expected to compete to directly own virtual asset infrastructure, including wallets, custody, and consumer applications, beyond the launch of Bitcoin (BTC) spot ETFs. Pandl analyzed that after Bitcoin spot ETFs become widespread, institutional interest would expand to various assets such as XRP and Solana (SOL). Cases like eToro's acquisition of a wallet provider and Stripe's acquisition of Bridge demonstrate the proactive moves of major players. Asset tokenization is expected to evolve from institutional-centric networks that prioritize privacy, such as Canton, gradually through hybrid models like Avalanche (AVAX), to fully decentralized finance.

The phenomenon of over $100 trillion in wealth in the US economy transferring from the Baby Boomer generation to crypto-friendly Millennials and Generation Z is a key driver stimulating direct on-chain investment demand. Younger generation investors have a strong tendency to manage their wallets directly and hold tokenized products, going beyond ETF investments through tax-advantaged accounts. Pandl was confident that this massive flow of capital would ultimately lead to the popularization of virtual assets, explaining that it would drive the qualitative growth of the on-chain ecosystem.

In the future virtual asset ecosystem, decentralized exchange tokens like Hyperliquid are highly likely to outperform centralized exchange tokens. Pandl predicted that Meta Platforms would re-enter the stablecoin business to seize leadership in next-generation consumer finance. Furthermore, competition in the micro-transaction market is expected to intensify as AI agents use blockchain and stablecoins as primary payment methods. Institutions are focusing on securing practical utility, paying attention to XRP's technological value.

After the bill's passage, the virtual asset market is expected to enter a mature phase with the harmonious inflow of funds from institutional and individual investors, based on regulatory clarity. The asset tokenization revolution and intergenerational wealth transfer will accelerate the process of virtual assets becoming an essential component of the mainstream financial system. With the full entry of institutional players and technological advancements combined, the virtual asset market is entering a new phase of growth.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*