The chief commercial officer of Auros, Jason Atkins, has raised significant concerns regarding the state of liquidity in the cryptocurrency markets, emphasizing it as the foremost challenge rather than merely a volatility issue. This statement was made in advance of the Consensus event in Hong Kong, a key gathering for crypto industry leaders.
Despite the growing institutional interest in cryptocurrencies throughout 2025, Atkins pointed out that inadequate market liquidity is a critical obstacle that prevents major Wall Street participants from entering the space without risking price disruption. He articulated that the absence of necessary conditions for market engagement creates a misleading impression about institutional investors” willingness to participate.
Atkins posed a pivotal question: Can the current market infrastructure support significant institutional demand? “It”s one thing to say, “we”ve convinced them to come now,”” he stated, “It”s another to ask, “Do you have enough room for everyone?”” This highlights a pressing concern about the market”s capacity to absorb incoming institutional capital.
As discussions surrounding liquidity gained traction, Atkins reiterated that the issue has been exacerbated by declining market enthusiasm. He referenced notable sell-offs, such as the crash on October 10, which have outpaced the recovery speed of traders and leveraged positions. This scenario reflects a fundamental shift among liquidity providers from creating demand to merely fulfilling it.
Industry experts emphasized that reduced trading activity leads market makers to adopt a more cautious approach, which further amplifies volatility and results in tightened risk management protocols, ultimately diminishing market liquidity. Atkins noted that this vicious cycle of volatility, caution, and illiquidity continues to stifle market performance, despite the potential for strong long-term gains.
He clarified that while volatility itself is not a deterrent for major investors, the real issue emerges when such volatility interacts with weak market conditions. “It”s challenging to manage volatility in thin markets,” he explained, highlighting the difficulties institutional investors face in protecting their investments and executing trades.
Atkins” comments reveal that current market conditions pose greater challenges for institutions compared to individual traders. He remarked on how large investors are now adhering to stringent capital preservation rules, which limit their tolerance for liquidity risks. “At that level of wealth, or if you are a huge institution,” he added, “it”s not just about getting the highest returns. It”s about getting the best returns while keeping your capital safe.”
Moreover, Atkins expressed skepticism regarding the narrative that capital is shifting from cryptocurrencies to artificial intelligence, asserting that the two sectors evolve at different paces. He pointed out that while AI has seen unprecedented interest lately, it does not equate to a withdrawal of funds from the crypto ecosystem.
In summary, Jason Atkins” insights underline the critical liquidity challenges that persist in the cryptocurrency markets, which must be addressed to facilitate the entry of significant institutional investment.
