Crypto's Washington hopes fade, but Grayscale and BlackRock see growth ahead

Grayscale and BlackRock said they expect continued growth in their crypto businesses even after a key Washington policy effort stalled, with both firms pointing to institutional adoption and global demand rather than U.S. politics as the main drivers. Grayscale framed the political setback as temporary and said demand from institutions and overseas investors should sustain the industry, while BlackRock said the development had little effect on its crypto operations. The remarks matter because the two asset managers are among the largest gatekeepers for institutional crypto exposure, and their confidence signals that product pipelines and client demand may keep expanding regardless of legislative timing. What to watch next is whether flows into their crypto products hold up and whether stalled U.S. rulemaking prompts more issuance and trading activity to shift to jurisdictions with clearer frameworks.