In a significant shift within the cryptocurrency landscape, Galaxy CEO Mike Novogratz announced that the “age of speculation” is coming to an end, giving way to a focus on real-world asset tokenization. In an interview with CNBC, Novogratz emphasized that the future of the crypto market will involve utilizing blockchain technology to enhance banking and financial services globally, transitioning from high-risk speculation to more stable returns associated with real-world assets.
Novogratz’s commentary comes in the wake of recent transformations in the crypto market, reflecting broader changes across the finance sector. He drew parallels between the market dynamics following the collapse of the FTX exchange in November 2022 and the October 2025 flash crash, which resulted in a staggering loss of $19 billion in crypto derivatives. Although the latter collapse was not precipitated by a singular event, it had a profound and lasting impact on market sentiment, disrupting the narratives that underpin crypto trading.
“Crypto is all about narratives, it’s about stories,” Novogratz remarked. He noted that these narratives take time to develop, and significant downturns can have lingering effects. The metaphor of “Humpty Dumpty” encapsulated his point; once a substantial portion of participants is “wiped out,” the recovery process is neither swift nor straightforward.
Despite these challenges, Novogratz maintains his conviction in the cryptocurrency market. Galaxy has launched a new hedge fund valued at $100 million, strategically designed to balance exposure between cryptocurrencies and equities. The fund will allocate up to 30% of its assets in crypto tokens, while the remaining 70% will be invested in financial services stocks anticipated to be influenced by ongoing changes in digital asset regulations and technologies.
Amidst these developments, the push for tokenization—moving traditional assets like stocks and bonds onto blockchain platforms—has generated renewed interest within the crypto space. Novogratz pointed out, however, that tokenized assets will inherently possess a different return profile compared to the dramatic gains typically sought by crypto traders.
Currently, Bitcoin’s price reflects the shifting sentiment, having dropped over 47% from its all-time high of above $126,000 in October to around $66,551 recently. It recently suffered a dip close to the $60,000 mark, with a 10% decline over the past week. Ethereum has seen a similar pattern, while leading altcoins such as XRP and Solana have experienced even sharper downturns during this period.
As the landscape evolves, the focus on tangible asset-backed investments may redefine how participants engage with the cryptocurrency market, moving away from speculation towards the promise of more sustainable financial models.
