BlockBeats News, July 9th – The JPMorgan Chase analyst team pointed out that the market sees the Strategy Bitcoin sell-off plan as a key risk to the crypto market, but this is not the main structural threat facing Bitcoin. The more fundamental risk lies in tokenization, payments, and settlements increasingly occurring on permissioned infrastructures without the need for a public blockchain. If this trend continues, the entire crypto ecosystem may face "structural degradation," leading to a slowdown in transaction activities, reduced liquidity, and weakened capital inflows, ultimately dragging down Bitcoin. The analysts bluntly stated: In our view, the more important risk comes from the way blockchain is being adopted in traditional finance by continuing to bypass public permissionless networks.

The analysts explained that so far, institutions have clearly favored permissioned chains due to their advantages in privacy, KYC/AML controls, governance, throughput, legal accountability, and regulatory certainty, posing a competitive threat to public chains like Ethereum. The widespread adoption of tokenized deposits, especially in non-transferable forms favored by regulatory bodies, may undermine the demand for stablecoins in institutional payments and settlements; the SWIFT blockchain plan and CBDC projects such as digital Euro and digital Yuan further strengthen regulated alternative solutions. In the $500 billion real-world asset tokenization market, although Ethereum currently holds a certain share, this is more likely to reflect early experimentation rather than long-term market structure— as institutional adoption grows, issuance, custody, settlement, and lifecycle management may increasingly be carried out on private or permissioned infrastructures that meet identity, confidentiality, and operational resilience requirements, with public blockchains only used for distribution and limited secondary transactions.