Wealthy investors are growing more comfortable with digital assets even as many of their financial advisers lag behind, according to a new survey from CoinShares, a digital asset investment firm. The research found that a majority of affluent investors across seven major economies already own cryptocurrency, and many intend to expand their holdings this year.

The survey's release coincides with continued capital flows into the sector despite a tougher market backdrop. Bitcoin is attempting to build on its best quarter since 2017 even as Treasury yields hold above 5%, while exchange OKX has secured additional funding at a $25 billion valuation. Meanwhile, Strategy is channeling fresh capital into its preferred stock, having spent more than six times as much last week repurchasing STRC shares as it did buying Bitcoin.

Bitcoin's rally runs into a 5% Treasury market

Bitcoin enters the new quarter on the back of its best third-quarter performance since 2017, but extending the rally could prove difficult. According to Delphi Digital, Treasury yields above 5% are offering investors an increasingly attractive alternative to risk assets.

The research firm pointed to Bitcoin's 43% gain in the third quarter and its third consecutive weekly advance, while cautioning that “the grind higher is happening against real resistance.” The obstacles cited include the Federal Reserve's September rate hike and Treasury yields at multi-decade highs — levels that sharpen the competition for capital that might otherwise flow into non-yielding assets such as Bitcoin and gold.

Vanessa Grellet of Arche Capital, however, noted that the debasement trade — which favors scarce assets such as Bitcoin and gold as a hedge against the declining purchasing power of fiat currencies — does not depend on low interest rates.

The rate outlook has since shifted. September payrolls data showed just 29,000 jobs added, well below forecasts of 80,000, sharply lowering the odds of an October rate hike according to CME FedWatch. New York Fed President John Williams likewise said there was no urgency to raise rates again. How expectations evolve from here will hinge on the incoming labor and inflation data that feed into the Fed's decisions.

For now, elevated Treasury yields remain a hurdle for risk assets. Bitcoin briefly climbed above $87,000 last week before pulling back to below $83,000 on Wednesday.

Affluent investors are moving faster than their advisers

A majority of affluent investors across seven major economies hold digital assets, with cryptocurrency accounting for roughly 10% of their portfolios on average, according to the CoinShares survey.

The study covered 2,230 investors with at least $500,000 in investable assets across the US, UK, France, Germany, Italy, Sweden and Switzerland. Crypto ownership ranged from 54% in Sweden to about 70% in the US, UK, Germany and Switzerland. In five of the seven countries, at least 85% of existing crypto investors said they plan to increase their exposure in 2026.

Investors appear more at ease with digital assets than some of the professionals advising them. About four in 10 respondents in Switzerland, France, the US and Germany who work with an adviser described them as overly cautious about the asset class.

Ric Edelman, founder of the Digital Assets Council of Financial Professionals, questioned the survey's finding that crypto makes up 10% of the average portfolio, saying his research suggests current allocations of 2% to 5% are more common. Even so, Edelman recommends substantially larger allocations of 10% to 40%, depending on an investor's risk tolerance.

OKX extends funding round at $25 billion valuation

OKX raised an undisclosed amount at a $25 billion valuation, extending a funding round that brought in $200 million from Intercontinental Exchange, the parent company of the New York Stock Exchange, in March. Existing partners and investors participated in the extension, including Standard Chartered's SC Ventures, Qube Research & Technologies, Ripple and stablecoin issuer Circle. The exchange did not disclose the size of the latest raise.

The funding follows OKX's deepening push into traditional financial markets. On Monday, an OKX-ICE joint venture filed with the US Securities and Exchange Commission to launch a tokenized stock trading platform under the regulator's new innovation exemption, a pathway the SEC has described as a way to bring novel products to market more quickly. The platform's launch remains subject to the filing and the exemption.

Strategy spends six times more on STRC buybacks than Bitcoin

Strategy spent $176.3 million repurchasing 1.77 million STRC shares last week, more than six times the $28.7 million it spent buying 334 Bitcoin. The purchase brought the company's holdings to exactly 848,000 BTC, according to a Monday 8-K filing with the SEC — a stockpile that makes Strategy the largest corporate holder of Bitcoin.

Bitcoin accumulation has slowed considerably, with Strategy's holdings rising just 0.2% in the third quarter after purchases of 7,218 BTC were partly offset by the sale of 5,553 BTC. The buyback-heavy stretch marks a shift in where the company's capital is being directed.

STRC has meanwhile recovered to near its $100 par value, trading around $99.53 after falling to roughly $75 in late June.

Strategy has also filed a proxy seeking shareholder approval to pay dividends daily on STRC, STRF, STRK and STRD. STRC currently pays dividends twice monthly, while the other three pay quarterly. Shareholders are scheduled to vote on the proposal on Oct. 28 — the next scheduled milestone for the plan. If approved, daily STRC dividends would begin in November, followed by STRF, STRK and STRD in January.

Strategy said the changes would not affect dividend rates or its overall payment obligations, but could affect reinvestment delays, liquidity and price stability.

Source: Cointelegraph