Short-Term Crypto Swings Are ‘Background Noise’ for Institutions, Says Gemini Exec - Coinedict

Institutional investors are increasingly treating short-term crypto price volatility as noise rather than a signal to exit, according to Gemini Asia Pacific head Saad Ahmed.

Speaking this week, Ahmed said institutional participation hasn’t reduced volatility, but has changed how markets respond to shocks. Instead of panic-driven sell-offs, price moves are now absorbed through structured products, balance-sheet decisions, and long-term allocation strategies.

“Institutional participation hasn’t eliminated volatility, it has reshaped it,” Ahmed said, adding that sharp daily moves matter far less to large investors focused on fundamentals and multi-year positioning.

Crypto markets faced heavy pressure between November and mid-December 2025, with Bitcoin falling roughly 17–21% at its worst and Ethereum dropping more than 20% before stabilizing. Despite this, Ahmed argues the market proved more resilient than in past cycles, with disciplined risk management preventing deeper spirals.

He noted that institutional capital is still entering the sector, but at a slower and more deliberate pace. ETF flows, while closely watched, reflect short-term sentiment rather than the full picture of demand. Instead, Ahmed pointed to regulated infrastructure, custody, liquidity depth, and on-chain utility as the real indicators of market health.

Looking ahead to 2026, Gemini is watching stablecoin usage, real-world asset tokenization, and institutional adoption across Asia-Pacific markets such as Singapore, Hong Kong, and Australia. According to Ahmed, these trends suggest crypto is evolving from a speculative trade into a strategic asset class, even as prices remain volatile in the short term.