With a rush of institutional investors in the crypto space, the crypto assets get a golden opportunity of recognition and adoption at a large scale.
There are now several reports out there that unveil the entry of a large number of big players in the cryptocurrency industry. In its survey, Fidelity found out that in a total of 800 institutional investors, about 36% of participants have invested their money over crypto assets. Similarly, Evertas, a crypto-powered insurance firm also revealed that people are onboarding Bitcoin as a source of best hedge fund against rising inflation and uncertain global financial structure. Based on the current data, it is also speculated that 90% of big investors will join the crypto space in one way or the other.
With the entrance of Institutions such as Grayscale, Goldman Sachs, MicroStrategy, and JP Morgan, Bitcoin has become an integral part of some portfolios against currency inflation. Some market analysts are so bullish that they are eyeing $1 million for 2025.
According to on-chain analytics firm Messari, nearly 0.5% of total BTC supply is under the custody of “publicly traded companies.”
There are some technical things that make Bitcoin popular among institutional clients.
As Bitcoin also acts as a source of payment besides its status as an asset, institutional clients attract towards these features and prefer to hedge it against disturbance in the traditional markets or increasing fiat inflation. There are two points where Bitcoin performs better than a sovereign currency: first in cross-border transactions and second secure underlying technology offering new opportunities.
Even skeptics of the past are now acclaiming the potential of the world’s leading cryptocurrency. For instance, Paul Tudor Jones and Ray Dalio declare it the “best inflation hedge” and agree it is better than physical hedge instruments such as gold.
As there are big players in the markets, there come very reliable custodians for crypto assets. Even some banks have gain permission to offer crypto custody services for users.
“We conclude a national bank may provide these cryptocurrency custody services on behalf of customers, including by holding the unique cryptographic keys associated with cryptocurrency, said Jonathan Gould, senior deputy controller for the Office of the Comptroller of the Currency.
Another trend is noted by the on-chain blockchain firms that institutional investors now want to hold Bitcoin in wallets rather than investing on futures.
Fidelity’s report also unveils that BTC addresses holding Bitcoin above 100 and 1000 have also grown.