Large financial institutions such as BlackRock and Fidelity are stepping up efforts to expand their crypto product businesses to attract more consumers. This means they need to hire more employees with crypto experience to achieve this goal. Yoann Turpin, co-founder of digital asset trading company Wintermute, said they have seen employees leaving to join non-crypto companies such as banks and hedge funds. He said this was one of the "unforeseen impacts" of large institutions entering the crypto space.

The surge in applications for spot Bitcoin and Ethereum exchange-traded funds (ETFs) indicates that the industry is getting “more third-party validation.” Turpin believes that this is a good and bad thing. The downside is that some talent is lost, but the upside is that there are now supporters in the traditional financial field who are familiar with the company culture and can help familiarize themselves with cryptocurrencies within the bank.

Recently, many talents from bankrupt crypto companies have found new homes in traditional finance. A Greenwich Alliance report last month found that bosses of banks, hedge funds, asset managers and other financial firms are increasingly hiring experienced professionals for their crypto divisions. Nearly a quarter (24%) of companies say they hold senior roles dedicated to digital assets.

Market analysts believe that cryptocurrencies have become a new battleground in the war among young, tech-savvy investors. Marketing and image are key. Turpin believes that the ETF push may have less impact in generating new money into the space and may be a more effective battle in terms of branding and understanding of new money inflows. The heightened sentiment not only helps investors, but also helps talent from traditional finance better integrate into the crypto space.