Ric Edelman says crypto’s biggest growth story is happening off the price chart

Latest developments: Edelman argues investor sentiment and industry fundamentals are moving in opposite directions.

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• Bitcoin ETF investors have pulled billions from funds in recent days, while market fears have risen amid concerns about Mt. Gox wallet movements and regulatory uncertainty, Edelman said.
• Debate around the CLARITY Act has added to uncertainty, with lawmakers including Sen. Bernie Sanders and Sen. Elizabeth Warren pushing for additional provisions related to crypto oversight, according to Edelman.
• The result is a market focused on negative headlines even as major financial institutions continue expanding crypto-related initiatives.
• Edelman joined CoinDesk’s Jennifer Sanasie on Public Keys.

The contrast: Wall Street firms are increasing their involvement despite weak market sentiment.

• BlackRock, JPMorgan, Morgan Stanley, Franklin Templeton, Fidelity, State Street and Invesco are all advancing tokenization efforts, Edelman said.
• Tokenization is expanding beyond crypto assets into equities, cash and ETFs, according to Edelman.
• Institutional investors are showing growing interest in crypto exposure, with many firms planning first-time allocations or increasing existing positions, he said.

Worth watching: The fate of the CLARITY Act could shape crypto markets in the months ahead.