2025 Cryptocurrency Trading Market Analysis: How Can Internet Brokers Capture the 69% Retail Investor Holding Bonus?

I. Cryptocurrency Trading Market: A New Landscape of Retail and Institutional Dance

The cryptocurrency market has evolved into a unique dual-track system where institutions dominate trading volume while retail investors dominate holdings. As of Q2 2025, 69% of Bitcoin is held by individual investors, a proportion far exceeding traditional financial markets. However, in terms of trading activity, about 80% of the volume comes from institutional investors such as hedge funds.

Major centralized exchanges control about 50% of global trading volume, becoming the most important liquidity hubs. In 2024, the annual cryptocurrency trading volume reached $188 trillion, with a turnover rate of 553%, far higher than the US and Chinese stock markets during the same period.

Internet brokers like Robinhood, Futu, and Tiger are actively entering the cryptocurrency trading market, attracting retail investors with lower transaction fees.

II. Global Regulatory Framework Accelerates: From Grey Areas to Compliant Operations

The period from 2023 to 2025 marks a watershed in cryptocurrency regulation, with major financial markets successively introducing systematic regulatory solutions:

• EU: Launched the Markets in Crypto-Assets (MiCA) regulation in June 2023
• US: Passed the Digital Asset Market Structure Act in July 2025
• Hong Kong: Introduced the "A-S-P-I-RE" regulatory blueprint
• Singapore: Implemented new regulations for digital token service providers in June 2025

Different jurisdictions have developed distinctive regulatory approaches, including the EU's "regulatory consistency", the US's "functional regulation" principle, and Hong Kong's "dual-track" strategy.

III. Internet Brokers' Business Model Innovation: Traffic Monetization and Scenario Expansion

Internet brokers have achieved success in the crypto space through "traffic + technology" business model innovations:

• Aggregating retail orders to create economies of scale, reducing transaction costs
• Innovating order flow payment models to achieve zero-commission trading
• Adopting a hybrid "intermediary + exchange" model to offer lower fees

The Payment for Order Flow (PFOF) model keeps client assets within the broker's account system, laying the foundation for diversified business expansion. Internet brokers are actively exploring innovative businesses such as cryptocurrency staking, self-custody wallets, and stock tokenization.

Hong Kong's "A-S-P-I-RE" roadmap provides internet brokers with a broader scope for imagination, including new scenarios like margin trading and collateralized financing. By 2027, crypto business is expected to contribute 3%-5% of revenue for some internet brokers, becoming an important growth engine.

IV. Conclusion

The cryptocurrency trading market is undergoing significant transformations, with retail investors holding a substantial portion of assets while institutional players dominate trading volumes. The evolving regulatory landscape is bringing more clarity and compliance to the industry, paving the way for traditional financial institutions to enter the market. Internet brokers are well-positioned to capitalize on this trend, leveraging their technological prowess and large user bases to offer innovative services in the crypto space. As the market matures, we can expect to see further integration of cryptocurrency trading with traditional financial services, potentially reshaping the future of finance.

FAQ

What is the current state of the cryptocurrency trading market?

The market has a dual-track system where institutions dominate trading volume (80%) while retail investors hold the majority of assets (69% of Bitcoin). Annual trading volume reached $188 trillion in 2024, with centralized exchanges controlling about 50% of global volume.

How are regulations shaping the cryptocurrency market?

Major financial markets introduced systematic regulatory solutions from 2023-2025, including the EU's MiCA regulation, the US Digital Asset Market Structure Act, and Hong Kong's "A-S-P-I-RE" blueprint. These regulations are moving the industry from grey areas to compliant operations.

How are internet brokers innovating in the cryptocurrency space?

Internet brokers are using a "traffic + technology" model to aggregate retail orders, innovate order flow payment models for zero-commission trading, and adopt hybrid "intermediary + exchange" models. They're also exploring new services like cryptocurrency staking, self-custody wallets, and stock tokenization.