In the Arena | February 1, 2026
- Michael Schwartz
- Feb 1
- 3 min read
“3 observations and a chart” on the latest in the digital assets sector
NYSE building blockchain-based trading venue
The New York Stock Exchange announced plans to bring U.S. equities on-chain, building a blockchain-based venue to support 24/7 trading of tokenized stocks and ETFs. The NYSE plans to integrate its existing order-matching technology with private blockchain networks, addressing long-standing frictions such as limited trading hours and delayed settlement. It is working with the SEC to do so within established regulatory frameworks. NYSE executives emphasized that nonstop trading aligns with investor behavior shaped by crypto markets. With Nasdaq pursuing similar initiatives, we highlight tokenization’s transition from experimentation to core market plumbing—accelerating the convergence of traditional capital markets and blockchain-native rails.
Crypto companies prepare for 2026 IPOs
A growing group of crypto-native companies is preparing to access the public markets in 2026. Ledger, which sells USB-style hardware wallets for secure self-custody of digital assets, is reportedly preparing for an IPO at a ~$4bn valuation—nearly triple its 2023 valuation—as rising security concerns and adoption drive revenues into the hundreds of millions. BitGo became the first major crypto IPO of the year, with its offering 13x oversubscribed and shares jumping 25% on debut despite subdued equity markets. In parallel, Zero Hash is raising $250m at a $1.5bn valuation after walking away from a potential Mastercard acquisition. We highlight growing institutional confidence in durable, revenue-generating businesses at the core of the digital asset ecosystem.
SEC and CFTC coordinating unified approach to crypto regulation
With both the SEC and CFTC now led by permanent, Trump-appointed heads, the two agencies are coordinating publicly on a joint crypto agenda and hosted events to signal aligned priorities on digital asset oversight. This marks a meaningful departure from prior turf battles that slowed clarity for innovators and investors. A more coordinated regulatory posture can reduce fragmentation in policy interpretation — and ultimately give market participants clearer guardrails around digital asset products and services. We highlight that a harmonized regulatory framework encourages compliant innovation and reduces the uncertainty that has historically constrained institutional capital.
Chart of the Month – “Nothing is broken. You’re just being tested….”
Arena Digital Capital Partners is a liquid evergreen fund open to monthly subscriptions. We are always happy to discuss further with you or investors you think may have an interest in the sector. Please reach out to Bill Cline at williamc@arenadigital.capital.
Sincerely,
The Arena Digital Capital Management Team
Michael Schwartz, Michael Prober & William Cline
Arena Digital Capital Management was founded in January 2022 by three experienced traditional finance hedge fund professionals who have been deploying personal capital in the digital asset ecosystem since 2018. The team has managed billions of dollars of capital for high net worth individuals, family offices, and institutions ranging from pension plans and endowments to sovereign wealth funds. We have worked closely with institutional consultants, RIAs, and other advisors in serving their clients.
In May 2022 we launched Arena Digital Capital Partners, with the goal of providing a multi-strategy investment vehicle to access the digital asset ecosystem. Our mandate is to offer broad exposure across the growing digital asset and blockchain sector with an appropriate level of diversification, professional oversight, and manager selection. Our collection of skill sets and our history in the business allows us to understand, assess, and engage with the practitioners of this nascent asset class with a level of diligence required to be responsible stewards of capital. We are happy to periodically share our observations with you.
Comments