Ark Invest flags bitcoin and tokenization as key drivers of the next digital asset cycle

Ark Invest said rising institutional adoption of bitcoin and the rapid growth of asset tokenization are accelerating the transition of digital assets from a niche market into core financial infrastructure, potentially pushing the sector’s value into the tens of trillions of dollars by the end of the decade.

In its Big Ideas 2026 report, the asset manager said advances in blockchain technology, clearer regulation and growing institutional participation are driving a structural shift in digital assets rather than a gradual evolution.

Ark argued that bitcoin, smart contract platforms and tokenized real-world assets are scaling faster than widely expected, moving beyond experimentation toward mainstream financial use.

The firm highlighted bitcoin’s expanding role as an institutional asset. It said U.S.-listed exchange-traded funds and public companies increased their combined bitcoin holdings to about 12% of total supply in 2025, up from less than 9% a year earlier. During the same period, bitcoin outperformed most major cryptocurrencies and broader crypto indexes on a risk-adjusted basis, while drawdowns from record highs became more contained.

Ark expects bitcoin to remain the largest digital asset by market value. The firm estimated that bitcoin and smart contract networks together could grow at an annualized pace of roughly 60% to reach about $28 trillion by 2030, with bitcoin representing around 70% of that total.

The report projected bitcoin’s market capitalization could climb from roughly $2 trillion today to about $16 trillion by the end of the decade, supported by its positioning as “digital gold” and increasing institutional demand.

Ark also pointed to stablecoins and tokenized real-world assets as key catalysts for broader adoption. It said improving regulatory clarity in the U.S. has encouraged financial institutions to reassess stablecoin issuance and tokenization strategies, helping push stablecoin transaction volumes to levels comparable to, or exceeding, major traditional payment networks.

Tokenized U.S. Treasuries, commodities and, eventually, equities were cited as early signs of a larger migration of financial assets onto public blockchains. While the tokenized asset market remains small today, Ark forecast it could surpass $11 trillion by 2030 as sovereign debt, bank deposits and public equities increasingly move on-chain.

The firm added that decentralized finance platforms and crypto-native issuers are narrowing the gap with traditional fintechs in assets under management, revenue efficiency and institutional relevance.

Taken together, Ark said these developments point toward a future in which public blockchains underpin money, contracts and ownership at global scale. While adoption is unlikely to be linear, the firm said investors and institutions that recognize the shift early may be better positioned as digital assets become more deeply embedded in the financial system.