“We will’t catch a break,” stated David Duong, Head of International Analysis, Coinbase Institutional, as he mentioned the present state of the crypto market, institutional adoption and Euro-Stabelcoins.
“We noticed ETF outflows in December, and a giant a part of that needed to do with tax loss harvesting and different issues. I assumed that we’d see a few of that restoration,” stated Duong. “Proper now, I might say markets are sadly pinned by technical components. And it’s the problem for lots of people.”
“I’m nonetheless cautiously optimistic for the primary half of 2026. I don’t have a powerful view on the place I see crypto going within the second half of the 12 months. And there are quite a lot of causes for that. I believe that there are particular issues proper now that I simply can’t value in. What may occur with midterms within the US, for instance? Or what occurs with the market construction invoice? I believe that progress on that would nonetheless be significant. So I’m watching to see whether or not that may very well be a possible catalyst for us into the second half of the 12 months.”
David Duong, Head of International Analysis, Coinbase Institutional stated that he’s optimistic that the invoice will go in 2026! “I believe that we’ve already gotten stablecoin oversight. Market construction readability goes to emerge too." #clarityact https://t.co/WUFL16O3ir
— Akriti Seth (@AkritiSethN) February 2, 2026
“It’s going to be a ladder and that’s going to be very useful for crypto. And so I see that taking place. I believe the liquidity state of affairs is displaying indicators (we produce our personal customized M2 cash provide index) that the very best regression tends to be a lag round 110 days. We’re at an upward uptick for that. I believe that these issues positively counsel to me that crypto must be doing higher within the Q1 and presumably within the Q2 as properly.”
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On Euro-Stablecoins
“Actually we’ll see a diversification of stablecoins into different currencies. We’re already seeing it. I believe that there’s bulletins on our potential Renminbi stablecoin (RMB) and a possible Japanese yen stablecoin. And we do have Euro stablecoins already, like, EURC, for instance, already exists.”
“It’s actually simply the traction round it. I believe that there’s quite a lot of geopolitical financial components that fall into this when individuals are eager about it, as a result of usually, the explanation why the greenback nonetheless represents like 99% of all stablecoins out there’s as a result of the greenback stays the reserve forex of the world.”
And also you talked about de-dollarization earlier. That’s in all probability not going to final ceaselessly, however we don’t know the way lengthy it’s going to final. It may nonetheless probably be generations lengthy. And once more, that has been accelerated in 2025. However for essentially the most half, individuals don’t know what the choice to the greenback could be.
“China clearly would love that to be the Renminbi stablecoin (RMB), nevertheless it’s a present account surplus nation. And customarily, what we’ve seen is that you could be a present account deficit nation so as to have the ability to produce a reserve forex just like the greenback, for instance. So there are challenges on what’s occurring in Europe.”
“Europe remains to be going via a really troublesome troublesome fiscal state of affairs. I imply, it’s not distinctive to Europe. It’s occurring globally. A whole lot of international locations are going via it. Notably, it’s been Japan during the last week that has grabbed the headlines. However we will’t overlook that France is coping with, I consider, 150% of GDP ranges. I imply, these are issues that have been a fear after we had the disaster again in 2012, for instance.”
“So, I believe that that is sort of the obstacles on which the euro experiment. And I nonetheless say it’s in that section the place although it’s been round for a really very long time, they’re making an attempt to determine it out as a result of we don’t have euro bonds like in a unified eurozone sort of approach. And there’s a motive for that. There’s nonetheless insurance policies of those particular person international locations. So I believe that these are the issues that make it troublesome. Whereas with the greenback, properly, we’ve an yield curve.”
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“Institutional adoption has positively gained momentum, and it’s been doing so for years”
“I work for the institutional aspect of Coinbase. So I’ve gotten a first-hand view of this stuff.”
“I’ve been with Coinbase for the higher a part of 4 years now. And over that point, I can see the incremental adjustments which have been occurring with establishments, not simply with the entry, however with their participation in these markets, it’s grown very, very sharply. And this is the reason I at all times felt very assured about this. Anecdotally, I’ll let you know that I keep in mind when 2022 occurred and we’re getting quite a lot of challenges. I’m not going to undergo all of them. I’m certain you keep in mind as properly. However I might have pals, I used to work in TradFi, who would attain out to me and be like, are you doing okay? I used to be like, sure, I’m superb. I really, if something, was very assured that issues have been going to be superb on the finish.”
2025 positively marked a really large breakthrough 12 months for institutional entry. 2026 will very probably see the following section of that institutional adoption being constructed.
“The investor base itself has additionally diversified. 2024, 2025, we noticed spot ETFs. And I believe these are positively creating these sturdy, regulated, acquainted on-ramp for traders.”
“We additionally acquired digital asset treasuries. And I believe individuals at the moment are extra shy about speaking about them, to be sincere. However I nonetheless assume they emerged as an vital company steadiness sheet automobile.”
“We’re seeing the tokenization of real-world belongings. Stablecoins are actually penetrating the core monetary workflows. Folks at the moment are not simply utilizing stablecoins to commerce with, however individuals are utilizing it for payrolls. Persons are utilizing it for cross-border funds. So that is the inspiration that’s going to help the expansion and infrastructure of crypto fee rail in 2026.”
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Key Takeaways
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In an exclusive chat with 99Bitcoins.com, David Duong, Head of International Analysis, Coinbase Institutional stated that he’s optimistic that the CLARITY invoice will go in 2026!
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Importantly, the market desires the CLARITY Act to go as a result of it ends the regulation by enforcement period.
The publish 99Bitcoins Exclusive: “We can’t catch a break,” Says Coinbase Research Chief Analyzing Crypto ETF Outflows, Euro-Stablecoins And Institutional Adoption appeared first on 99Bitcoins.
