The crypto bear market is likely over, arguing that a fresh cycle driven by tokenization and artificial intelligence-powered financial services is beginning to take shape, said Tom Lee, chairman of Bitmine (BMNR) and co-founder of Fundstrat.

Speaking at Consensus 2026 in Miami on Thursday, Lee pointed to bitcoin’s BTC$80,042.23 recent strength as a historical signal that the market leaving behind the downtrend that saw prices crater from $126,000 in October to $60,000 in February.

After positive monthly returns in March and April, BTC is up another roughly 5% in May so far, which would be the third consecutive positive monthly return.

“You have never in a bear market if bitcoin closes up three consecutive months,” Lee said. “If bitcoin closes above $76,000 this month, the bear market is definitively over.”

The CoinDesk Bitcoin Price Index closed April at $76,300, while the asset is currently trading just below $80,000.

Lee said investors remain psychologically anchored to the last crypto downturn and are underestimating the strength of the current rebound. He also pointed to bullish technical signals from veteran trader John Bollinger, who recently said his trend models had turned positive on bitcoin.

Adding to the bullish narrative, Lee noted that software stocks — a sector that was battered amid concerns of AI disrupting its business model and Fundstrat recently upgraded — have historically traded in close correlation with bitcoin. Since tensions escalated between the U.S. and Iran, Lee added, crypto assets have outperformed most traditional markets, with ether (ETH) leading gains.

Tokenization and AI agents driving next cycle

Fueling the next bull market in crypto are two megatrends that are disrupting finance: all assets migrating onchain called tokenization and artificial intelligence (AI) agents using blockchain rails.

Lee argued that AI agents are going to need money to move value autonomously, and for that they will increasingly rely on blockchain networks and tokenized financial systems.

He pointed to stablecoin adoption as evidence the transition is already underway. Stablecoin transaction volumes have already surpassed Visa payments, he said, while he pointed to Grayscale’s report that the $300 trillion securities market will eventually migrate to blockchain rails as tokenized assets.

“The networks that host a large share of tokenized activity are going to capture the economic value,” Lee said.

That shift could radically reshape the economics of finance itself, he argued. Lee compared JPMorgan — projected to earn roughly $60 billion this year with 300,000 employees — to firms like stablecoin issuer Tether USDT$0.9997 and trading giant Jane Street, which generate similar profit levels with just a fraction of the workforce.

“Native digital companies using blockchain as settlement eliminate a lot of processes and people,” he said.

In Lee’s view, crypto-native financial firms could increasingly resemble the internet companies that displaced legacy media and telecom giants over the past two decades.

“In 10 years, half of the largest financial institutions in the world will be native digital,” he said.

UPDATE (May 7, 17:01 UTC): Adds presentation slides cited by Tom Lee during his Consensus 2026 keynote.

Palm Beach, Florida, May 7, 2026 – Hosted by Luna PR, the fourth edition of the Crypto Polo Cup (CPC) will take place on May 9, 2026, at the Santa Clara Polo Club, alongside Consensus Miami. The invite-only event will bring together institutional leaders, founders, and investors across the digital asset and financial sectors.

Since its debut in Palm Beach in 2022, Crypto Polo Cup has established itself as a premier gathering the intersections of digital assets, finance, and culture. Now in its fourth year, the 2026 edition will welcome more than 500 guests for a day blending sport, entertainment, and high-caliber networking.

“The Crypto Polo Cup has grown into a global meeting point for leaders across industries, creating a space where meaningful relationships are formed, strategic conversations happen, and real collaboration takes shape,” said Nikita Sachdev, Founder and CEO of Luna PR. “We are proud to bring CPC back to Florida, where it first began, and to welcome our global community during Consensus Miami week.”

The event will feature two professional polo matches, offering a distinctive setting for meaningful conversations and high-value connections. Alongside the match, guests will have the opportunity to connect with senior leaders across the financial sectors in a more intimate environment.

This year’s edition is supported by a select group of partners whose involvement reflects the continued industry backing behind CPC including TEXITcoin, Binance, Naoris, AMINA, Solana Company, CakeWallet, Unicoin, Quantum, CoinRoutes, and Sailo Tech.

This year’s ambassador lineup spans across government, global exchange leadership, venture capital, media and digital asset innovation, reflecting the breadth of industries that CPC brings. Ambassadors include:

• Michael Carbonara, Congressional Candidate FL-22
• Rachel Conlan, Global CMO of Binance
• Yana Prikhodchenko, CEO of Cointelegraph Global
• Tess Hau, Founder of Tess Ventures
• Silvina Moschini, Founder of Unicorn Hunters
• Michael Terpin, Founder and CEO of Transform Ventures
• Matthew Jason Nordgren, Founder and Managing Partner of Arcadian Capital
• Ran Neuner, Founder of Crypto Banter
• Gary Hopkinson, Managing Director of Clear Street
• Analys Falchuk, Investor Relations Manager, OG Advisory Group.

Their participation reinforces the CPC’s position as a meeting point for leaders shaping the future of technology, finance, media, and global markets.

CPC continues to serve as a platform to major industry gatherings, offering a more informal environment for connection and collaboration. Attendance is invitation only. Limited media access is available upon request.

About Crypto Polo Cup

The Crypto Polo Cup is where the world of investment, innovation, and influence converges. Since its inception in Palm Beach, Florida, in 2022, it has become a premier invitation-only event that attracts the biggest players in venture capital, blockchain, and emerging technology. With billions in investment capital represented on and off the field, this is where deals are made, partnerships are formed, and the future of Web3 takes shape.

Powered by Luna Media Corp, a global powerhouse that houses eight companies, including Luna PR – the leading PR agency in Web3, the Crypto Polo Cup is a gathering of visionaries who are shaping the future of technology and finance.

www.cryptopolocup.com

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Institutional fund managers are quietly reawakening interest in digital assets, led by Bitcoin, as market sentiment improves and the pathway for regulated exposure broadens. CoinShares’ April 2026 Digital Asset Fund Manager Survey captures how 26 institutions, collectively managing about $1.3 trillion, are navigating a cautious entry into crypto portfolios. Allocations remain modest, hovering around 1% of assets under management, a level CoinShares describes as a typical entry sizing in a de-risking environment.

Bitcoin remains the digital asset with the most compelling growth outlook, CoinShares head of research James Butterfill wrote in the report.

Yet the picture is not uniform. The survey highlights incremental progress in exposure to core assets, with a notable tilt toward Bitcoin as the asset seen to offer the strongest upside, alongside modest improvements for Ether (ETH) and Solana (SOL) versus prior quarters. Specifically, about 32% of respondents reported already holding Bitcoin, while around 25% have exposure to Ether. The numbers signal a cautious but real shift toward established, highly liquid digital assets even as investors weigh internal governance standards and evolving regulatory guidance.

Key takeaways

• Bitcoin dominates the growth outlook among institutional participants, with 32% already invested and 1% average portfolio allocation, underscoring a measured entry approach in a maturing risk framework.
• Interest is broadening modestly to Ether, with roughly 25% of surveyed managers already holding ETH; Solana and other ecosystems show firmer but still tentative uptake.
• Overall crypto allocations remain restrained, as institutions balance potential upside against internal restrictions and ongoing regulatory uncertainty.
• Inflows into crypto investment products have been resilient, led by Bitcoin demand, signaling a stronger tilt toward regulated exposure and exchange-traded structures.
• Regulatory clarity and the continued expansion of spot Bitcoin ETFs are shaping the adoption path, even as managers pivot from legacy altcoins toward newer DeFi protocols and emerging blockchain sectors.

Rising inflows and the ETF tailwind

The upbeat tone from CoinShares aligns with broader institutional flow patterns seen in the first weeks of 2024 and beyond, as regulated vehicles gain traction. Data in recent weeks showed crypto investment products posting multiple consecutive weeks of inflows, with Bitcoin-led demand driving the trajectory. In a related momentum signal, exchange-traded products tracking digital assets attracted about $1.2 billion in inflows through April 27, marking the fourth straight week of gains and lifting total inflows in that stretch to roughly $3.9 billion.

The momentum has extended into early May, with U.S. spot Bitcoin ETFs reporting nearly $1 billion in net inflows in a single week as BTC traded back above the $80,000 level, according to SoSoValue data. This pattern reinforces a takeaway echoed by several surveys: regulated exposure is reducing operational frictions for institutions that previously faced custody and counterparty concerns.

The appetite for regulated exposure is also reflected in broader market surveys. A separate study conducted by Coinbase and EY-Parthenon found that about 73% of institutional investors plan to increase their digital asset exposure within the year, with most expecting crypto prices to move higher over the next 12 months. Taken together, these data points suggest that institutional demand for regulated crypto products is becoming more flexible and sustained as market sentiment improves and the regulatory backdrop gradually stabilizes.

From legacy altcoins toward new rails: what’s changing in allocation dynamics

One notable thread in the April survey is a shift away from “legacy” altcoins toward newer decentralized finance protocols and emerging blockchain sectors. While Bitcoin remains the anchor for growth prospects, the appetite for alternative chains is evolving. This mirrors a broader industry trend in which institutions seek exposure through regulated vehicles, yet also differentiate within the crypto ecosystem by favoring assets tied to scalable, real-world use cases or robust security and governance frameworks.

Internal constraints and regulatory ambiguity linger as the principal barriers to broader adoption. The survey underscores that even with a more constructive sentiment, institutional participants continue to navigate governance approvals, risk management policies, and compliance checks that can slow or cap how quickly and how much they allocate to digital assets. The dynamic suggests that while the market is progressing, the speed of institutional onboarding will remain contingent on policy clarity and the reliability of regulated product suites.

Regulatory momentum and the path ahead for institutions

Several factors contribute to the changing institutional calculus. The launch and expansion of spot Bitcoin ETFs have been widely cited as a turning point for institutions seeking regulated, regulated exposure without direct custody of digital assets. The ETF framework reduces friction around custody, settlement, and reporting, enabling more traditional asset allocators to participate in crypto markets with familiar risk controls.

For investors and builders, the implications are meaningful. As more regulated products gain traction and more institutions report incremental exposures, liquidity in Bitcoin and select blue-chip assets can strengthen, potentially supporting price discovery and stabilizing volatility in the near term. At the same time, the evolving regulatory landscape—particularly around custody, exchanges, and stablecoins—will influence how quickly inflows translate into long-term allocations and portfolio diversification strategies.

Looking ahead, market observers will watch several developments. In the near term, continued inflows into regulated products and any acceleration in the adoption of spot ETFs will matter for market structure and capital formation. In the medium term, the degree to which institutional desks implement risk controls, diversify into DeFi rails, and incorporate on-chain governance considerations will shape the pace and scope of institutional participation. Finally, regulatory clarity—especially around stablecoins and cross-border settlement—remains a pivotal hinge on how broadly the crypto market integrates into mainstream asset management.

In investors’ minds, Bitcoin’s role as a tested, liquid, and regulatory-friendly exposure appears to be the anchor around which broadened crypto exposure could revolve. James Butterfill’s summary underscores a pragmatic view: Bitcoin’s growth outlook remains the most compelling among digital assets, even as the market observes gradual improvements in other major holdings like Ether and Solana.

As the spring season unfolds, the question for readers is not only where allocations stand today but how quickly institutions will move from “entry sizing” to deeper, more diversified exposure. With regulated product suites expanding and sentiment turning more constructive, the coming quarters could reveal whether this uptick in professional interest translates into sustained, material changes in the crypto market’s institutional footprint.

Market-watchers should stay tuned for updates on ETF distributions, new fund launches, and any shifts in regulatory guidance that could alter banks’ and asset managers’ risk appetites. If the current trend holds, 2026 may prove to be a year when institutional participation becomes a more regular, if measured, feature of crypto market dynamics rather than a episodic surge.

The CLARITY crypto market structure bill could see a markup in the US Senate Banking Committee as early as next week, according to Kara Calvert, the vice president of US policy at crypto exchange Coinbase.

“My prediction is that we have a markup next week,” Calvert told the audience at the Consensus 2026 crypto industry conference in Miami, Florida.

She said that the bill needs at least 60 votes to pass in the Senate and that the CLARITY bill needs bipartisan support to become law. She said:

“That means you need Democrats. You need a bipartisan bill, and we have all been working really hard to make sure that bipartisanship holds. I think the big question is, how do these votes shape up over the next few days?”

Kara Calvert, pictured on the left, provides an update on the CLARITY market structure bill. Source: Consensus 2026

A HarrisX survey on Thursday revealed that there is strong, broad-based and consistent demand for clear federal rules. A 70% majority of voters say the US should already have passed clear cryptocurrency legislation, and 62% say it is important that the US set the global rules for digital finance.

The CLARITY bill stalled in January after Coinbase withdrew its support for the legislation, citing several concerns, including a lack of legal protections for open source software developers, a prohibition on stablecoin yield, and decentralized finance (DeFi) regulations. 

Related: US senator says crypto market structure vote may happen by August

Coherent tax policy remains a barrier to institutional adoption

A lack of coherent tax policies is the main “barrier” to institutional crypto adoption, Calvert said, adding that tax reform is a bigger issue for institutions than market structure legislation.

Many of these institutions just want to buy and hold cryptocurrencies or trade digital assets, but are burdened by tax compliance and reporting requirements, she said.

A HarrisX poll shows there is broad bipartisan support for passage of the CLARITY Act. Source: HarrisX

Tax reporting requirements under the current regulations mean the Internal Revenue Service (IRS) forces crypto exchanges to document every crypto transaction using 1099-DA forms, she added.

“We’re sending out millions of 1099-DA’s for things like $1 transactions — that makes zero sense,” Calvert said.

She added that she “hopes” tax reform legislation can advance through Congress in 2026, citing several crypto tax proposals submitted by US lawmakers, including the Digital Asset PARITY Act, introduced by Representatives Max Miller and Steven Horsford in March.

“I think that we will see action in the Senate. I think we will see legislation, probably in the next month or two, in the House,” she said.

Magazine: Will the CLARITY Act be good — or bad — for DeFi?

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Update (May 7 at 9:47 PM UTC): This article has been updated to include a statement from Binance.

The US Department of the Treasury reportedly demanded that Binance follow a monitoring program put in place by a 2023 deal between authorities and the cryptocurrency exchange, following reports that the company facilitated $1 billion to entities tied to Iran.

According to a Thursday report by The Information, the Treasury Department “privately demanded” that Binance be in compliance with a monitoring program to which it had agreed after reaching a deal with US authorities in 2023. The deal, which included a $4.3 billion settlement with Treasury and the US Department of Justice, required Binance to comply with a three-year monitoring program overseen by government officials. 

The reported letter from Treasury followed reports that Binance fired individuals responsible for telling the exchange’s executives that $1 billion flowed through the platform to entities tied to Iran. A group of senators followed, urging Treasury Secretary Scott Bessent to report on Binance’s adherence to the 2023 settlement.

“Binance is committed to cooperating with the independent monitor and our ongoing collaboration with relevant agencies,” a spokesperson for the exchange told Cointelegraph in response to the report. The spokesperson said:

“We welcome constructive feedback from the Treasury and view this oversight as an important part of continuously strengthening our compliance and anti-money laundering controls. We are providing the monitor with full cooperation and transparency.”

Binance’s ties to the Trump administration have come under scrutiny since a United Arab Emirates-based entity invested $2 billion in the crypto exchange using the USD1 stablecoin issued by World Liberty Financial, the company co-founded by US President Donald Trump and his sons. Trump also pardoned former Binance CEO Changpeng Zhao in October 2025.

Related: US authorities freeze $344M in crypto linked to Iran

Zhao pleaded guilty to one felony charge related to failure to maintain an anti-money laundering regime at Binance as part of the 2023 settlement.

Changpeng Zhao speaking at Consensus on Thursday. Source: Cointelegraph

Zhao rules out leading another crypto company

The Information’s report coincided with Zhao’s appearance at the Consensus conference in Miami on Thursday.

The former CEO said he had been “trying to avoid [the] US” but floated the idea of revitalizing Binance.US to give users access to global liquidity. He also dismissed the idea of being in a leadership role at a crypto company again, having resigned as Binance CEO in November 2023.

“I don’t think I’ve got the stamina to run another startup, to lead another company,” said Zhao. “I’m a one-trick pony. I’m okay with that level. I’m done.”

Magazine: Guide to the top and emerging global crypto hubs: Mid-2026

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TLDR

• 21Shares launched the 21Shares Canton Network ETF on Nasdaq under the ticker TCAN.
• The ETF provides direct exposure to Canton Coin, the native token of the Canton Network.
• The Canton Network focuses on privacy-preserving blockchain infrastructure for institutional finance.
• Major firms, including Goldman Sachs, Microsoft, and DTCC, support Digital Asset, the network’s primary developer.
• The launch adds to a growing list of crypto exchange-traded funds in the United States.

---

A new Crypto ETF began trading on Nasdaq as 21Shares launched the 21Shares Canton Network ETF under ticker TCAN. The fund offers direct exposure to Canton Coin, the native token of the Canton Network. The listing expands the range of crypto-linked exchange-traded products in the United States.

Crypto ETF Expands Access to Canton Coin

21Shares listed the 21Shares Canton Network ETF on Nasdaq on Thursday under the ticker TCAN. The Crypto ETF gives investors direct exposure to Canton Coin, which powers the Canton Network. The firm said the product marks the first U.S. ETF tied directly to the token.

Canton Coin serves as the utility token for the Canton Network, which focuses on institutional finance use cases. The network supports privacy-preserving transactions and data management across financial markets. Major firms, including Goldman Sachs, Microsoft, and DTCC, support Digital Asset, the network’s primary developer.

Andres Valencia, executive vice president of investment management at 21Shares, addressed the launch in a statement. He said, “The Canton Network has attracted strong institutional interest given its focus on privacy-preserving infrastructure for capital markets.” He added that backing from Nasdaq, Moody’s, and Deloitte reflects confidence in shared blockchain infrastructure.

Valencia stated, “When you see names like Nasdaq, Moody’s, and Deloitte supporting a common blockchain infrastructure, you are looking at infrastructure that has the potential to reshape how data and capital move across global markets.” He linked the ETF launch to that institutional support. The company confirmed that TCAN seeks to track the performance of Canton Coin.

TCAN joins a growing list of crypto exchange-traded funds that launched over the past year. Fund issuers have introduced products tied to SOL, XRP, DOGE, HBAR, and Polkadot. As a result, the U.S. market now offers broader access to digital asset exposure through regulated vehicles.

Regulatory Shift Fuels Crypto ETF Growth

The U.S. Securities and Exchange Commission oversees approvals for exchange-traded funds, including crypto products. Since January 2025, the agency has taken a more supportive stance toward digital assets. President Donald Trump returned to office that month and appointed Paul Atkins as SEC Chairman.

Chairman Atkins has moved to clarify the agency’s position on cryptocurrencies. The SEC issued guidance stating that most cryptocurrencies do not qualify as securities. That position has influenced the pace of Crypto ETF filings and approvals.

Market participants have responded with new applications and product launches. As a result, issuers continue to expand offerings across different blockchain networks and tokens. The debut of TCAN adds another fund to the expanding lineup of crypto-linked ETFs trading on U.S. exchanges.

Michael Saylor’s comment this week that Strategy might sell portions of its Bitcoin holdings, is a decision that gives the BTC treasury company Strategy, optionality, according to BTC advocate Samson Mow.

“Never selling limits optionality. Public markets are war. In war, you need all available tools at your disposal,” Mow said after company co-founder Saylor’s comment during Strategy’s first-quarter earnings call on Tuesday. That the company might sell some BTC in the future, Mow added:

“The more tools Strategy holds, the fewer angles its adversaries have. A company with real optionality is hard to game: it might sell, hedge, issue, or buy. A company that has publicly vowed to only ever do one thing has handed a map to short sellers and arbitrageurs.” 

Strategy is the largest publicly traded Bitcoin treasury company, according to BitcoinTreasuries, and holds 818,334 BTC at the time of this writing, and any potential sales could weigh on spot BTC market prices, according to some crypto market analysts.

Strategy’s total BTC holdings over time. Source: Strategy

Related: Strategy takes Bitcoin buying breather ahead of Q1 earnings report

As he signals potential BTC sales, Saylor says company can fund dividends “forever” on BTC alone

“We’ll probably sell some Bitcoin to fund a dividend, just to inoculate the market, just to send the message that we did it,” Saylor said during the earnings call.

He said that if the price of BTC appreciates by more than 2.3% annually, the company can fund its dividends “forever” and would also allow Strategy to pay dividends “without selling a single share of stock.”

“We could stop selling MSTR common stock right now,” Saylor said, adding, “We can fund the dividends with Bitcoin sales.”

Saylor discusses paying dividends using BTC appreciation. Source: Strategy

If the company can issue more of its STRC preferred stock and BTC rises above the breakeven level, it would be able to fund dividends indefinitely, while also continuing to increase the amount of BTC it holds, Saylor said during the earnings call.

The average cost of Strategy’s BTC holdings is $75,537 apiece, according to the company’s website. At last look on Thursday, Bitcoin was changing hands at about $79,976, according to CoinMarketCap.

Strategy funds its BTC purchases through a mixture of corporate debt and equity instruments, a practice that has raised concerns with some investors over shareholder dilution and leverage-fueled buying.

Magazine: Bitcoin’s ‘biggest bull catalyst’ would be Saylor’s liquidation: Santiment founder

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Coinbase (COIN) shares fell more than 5% in after-hours trading Thursday after the crypto platform reported weaker-than-expected first-quarter results as falling crypto prices weighed on trading activity, one of the company’s main sources of revenue.

The company posted a loss of $1.49 per share, compared with analyst expectations for a $0.27 profit. Revenue came in at $1.41 billion, below estimates of $1.52 billion.

Transaction revenue totaled $755.8 million, missing analyst expectations of $805.2 million. Subscription and services revenue, a segment investors closely watch as Coinbase tries to reduce its reliance on trading fees, totaled $583.5 million, below expectations of $619.3 million.

Crypto markets weakened sharply as bitcoin BTC$79,891.58 and other digital assets fell. Lower prices and reduced volatility typically lead to weaker spot trading volumes across exchanges. Investors had expected a slowdown after the crypto selloff early in the quarter, even though bitcoin rebounded roughly 12% in March.

Coinbase has spent the past several years expanding beyond its core trading business into stablecoins, staking, derivatives and blockchain infrastructure. The company said Wednesday that its global crypto trading volume market share rose to 8.6%, a record high, driven partly by growth in derivatives trading.

Trailing 12-month derivatives trading volume increased 169% year over year, while retail derivatives revenue surpassed an annualized run rate of $200 million for the first time, Coinbase said.

The company also pointed to growth in prediction markets and stablecoin activity. Coinbase said its prediction markets business surpassed $100 million in annualized revenue within its first two full months following its U.S. launch.

Meanwhile, Coinbase said its Base blockchain processed 62% of global onchain stablecoin transaction volume during the quarter.

Earlier this week, Coinbase said it would cut about 700 jobs, or roughly 14% of its workforce, as part of an AI-driven restructuring effort. The company also cited the broader crypto downturn as a factor behind the layoffs.

Investors are increasingly focused on whether Coinbase’s subscription and infrastructure businesses can offset the cyclical swings of crypto trading revenue during weaker markets.