This article first appeared on GuruFocus.

The crypto industry entered 2025 with expectations that a more constructive political and regulatory backdrop could support a renewed phase of growth, following President Donald Trump’s outreach to the sector and deeper engagement from major financial institutions. Early in the year, that optimism appeared justified as digital-asset prices rose, companies accelerated IPO plans, and several high-profile legal actions were dropped or resolved. Industry participants pointed to a perception shift around crypto’s legitimacy and long-term role in finance, even as market performance failed to fully reflect the improving sentiment.

Performance across the sector ultimately diverged. Bitcoin…