Volatility reared its head across the financial markets in April and crypto assets were not spared. The uncertainties around tariff policy in the aftermath of “Liberation Day” led to a month where bitcoin (BTC) dropped below $76,000 before recovering mid-month and rising nearly 25% off that low through yesterday.

Equities and other risk assets were also exposed to this volatility, but what was notable to see is that, once again, crypto assets recovered faster than other risk assets. Using the Nasdaq Crypto IndexTM (NCITM) as the proxy for the digital asset market, we can see that crypto outperformed both the S&P 500 and gold in the weeks following the US regional banking crisis in early 2023, the yen carry trade unwinding in August of 2024, and the implementation of Trump’s tariffs this month.

Source: Hashdex Research with data from CF Benchmarks and Bloomberg (from March 9, 2023 to April 27, 2025). Since 30 full days have not yet passed since “Liberation Day,” we use performance data up through 4/27/25 to illustrate the period.

Why is this? We are seeing a growing convergence of market behavior, regulatory progress, and real-world use cases that are strengthening the investment case for crypto. Two major developments in particular deserve attention. First, bitcoin is maturing as a store-of-value asset, increasingly behaving like “digital gold” in institutional portfolios. Second, the rapid global adoption of stablecoins and the emerging tokenization trend are reinforcing the value proposition of smart contract platforms like Ethereum and Solana, underscoring their role as the infrastructure layer of a new financial system. Together, these trends are accelerating crypto’s integration into the global economy and creating compelling long-term investment opportunities.

Bitcoin’s growing role as a store of value

Bitcoin’s core investment thesis has long centered around its scarcity, decentralization, and resistance to censorship. But for much of its history, it was seen more as a speculative asset than a reliable store of value. We are seeing increasing evidence that this perception is now shifting, notably last week when BTC rose alongside gold as stock indices fell and the US dollar hit a three-year low.

Three developments have been key to bitcoin’s evolution as a store-of-value asset:

1. Macro environment alignment: Bitcoin is increasingly viewed as a hedge against currency debasement and long-term monetary instability. With developed economies still grappling with inflationary pressures and debt sustainability, investors are reassessing the role of hard assets in portfolios. Gold has historically served this role—but bitcoin, with its verifiable scarcity (a fixed 21 million supply), global liquidity, and portability, is increasingly seen as a digital alternative. Recent correlations during macro events further reinforce this view. In 2023 and early 2024, bitcoin often moved in tandem with gold during geopolitical tensions and inflationary scares, signaling that markets are beginning to treat it as a safe-haven asset rather than a purely risk-on trade.
2. Institutional infrastructure and spot ETFs: The launch of US-listed spot bitcoin ETFs in early 2024 marked a watershed moment. This development provided investors with a simple, regulated, and cost-efficient way to gain exposure to bitcoin through traditional financial channels. As more institutional-grade custody, execution, and compliance infrastructure goes live, we expect bitcoin’s correlation with traditional safe-haven assets to strengthen further, reinforcing its store-of-value narrative.
3. On-chain metrics and long-term holders: Perhaps most telling is the behavior of bitcoin holders. On-chain data shows that a significant percentage of bitcoin is now held by long-term investors—wallets that have not moved funds for over a year. These holders typically exhibit low sensitivity to price volatility and reflect growing confidence in bitcoin as a long-term asset. This behavior supports price stability and reduces sell pressure during market downturns. It also aligns with the characteristics we expect from a mature store-of-value asset.

Stablecoins, tokenization, and the smart contract opportunity

While bitcoin is moving toward a role as digital gold, the demand for stablecoins—digital assets pegged to fiat currencies, most commonly the US dollar—is rising. In addition, tokenized money-market funds are on the rise since the beginning of 2023, with traditional institutions, such as BlackRock and UBS, already tapping into this market and gathering billions of dollars under management in their own version of yield-bearing dollar tokens. Ethereum, its suite of Layer-2 solutions, and other smart contract platforms like Solana and Avalanche are the very networks used to tokenize real-world assets, facilitating transactions and adding programmability and new utility made possible due to the speed, security and composability of public blockchains. Dollar stablecoins, particularly USDC and USDT, now facilitate nearly $3 trillion in annual transaction volume, surpassing the combined volumes of PayPal, Venmo, and Western Union. Their utility spans remittances, on-chain trading, and merchant payments.

The growth of stablecoins and tokenization is clearly not merely a crypto-native phenomenon. Financial institutions and fintech companies are integrating stablecoins into their products, and multiple jurisdictions—from Singapore to Brazil to the US—are exploring regulatory frameworks to support their use.

So, why does this matter for Ethereum and other smart contract platforms?

1. Stablecoins and tokenization drive blockchain activity: Stablecoins are the most widely used applications on programmable public blockchains. Ethereum remains the dominant platform for stablecoin issuance and transaction settlement, and its competitors are also experiencing continued growth in the past several years. This trend generates fees on these networks, securing demand for their native tokens, and incentivizing ongoing infrastructure development. This economic activity supports the investment case for assets like ETH and SOL as “yield-generating” assets (through staking) and as the fuel required to power network computation.
2. Network effects and platform stickiness: Smart contract platforms benefit from strong developer mindshare, extensive tooling, and a deep ecosystem of wallets, DeFi protocols, and onramps. Stablecoins and tokenization amplify this ecosystem by making blockchains more usable and more financially relevant to everyday users. As these become embedded into mainstream financial products—like savings accounts, neobanks, and cross-border commerce—they create persistent demand for the networks that support them.
3. Smart contract monetization models: The success of stablecoins and the emerging trend of tokenization also hint at the business models of tomorrow. Blockchains that can efficiently process high volumes of transactions—while maintaining low fees and regulatory compliance—will capture significant value.

Implications for investors

These dual narratives—bitcoin as digital gold and smart contract platforms as financial infrastructure—are not mutually exclusive. They complement one another and represent two pillars of the evolving digital asset thesis. For long-term investors, this presents a clearer framework for portfolio construction:

• Bitcoin: A macro hedge and store of value, increasingly playing a role similar to gold in diversified portfolios. Best positioned to benefit from macro uncertainty and institutional adoption.

• Smart contract platforms: Growth assets tied to the expansion of on-chain economic activity, especially in stablecoin usage, tokenization, and DeFi. These platforms will benefit from network usage, staking yields, and infrastructure adoption.

As always, risks remain—from regulatory fragmentation to network competition. But unlike previous cycles, we are now seeing real-world adoption driving demand and investor interest. Bitcoin and smart contract platforms are no longer just ideas. They are working systems with proven use cases and growing economic gravity.

At Hashdex, we believe digital assets are entering a new phase—one characterized less by speculative mania and more by measurable integration into the global economy. Bitcoin’s maturing role as a store of value, alongside smart contracts’ central position in powering stablecoin and tokenization infrastructure, underscores this shift.

Our index-based investment strategies are built to capture this evolution: favoring assets with enduring network effects, regulatory momentum, and demonstrated economic utility. As the market continues to evolve, we remain committed to helping investors navigate this journey with clarity, conviction, and a long-term mindset.