- Research shows that institutional investors are more inclined to invest in Bitcoin.
- The industry hopes the involvement of large institutions will foster mass adoption.
- The price crypto enthusiasts will have to pay may be too high.
Institutions are coming, surely but slowly
According to the recent survey conducted by the crypto asset insurance company Evertas, about 90% of institutional investors with nearly $80 billion of aggregated assets under management plan to increase their exposure to the cryptocurrency market within the next five years.
The team surveyed pension funds and insurance companies in the US and UK. The overwhelming majority confirmed that they considered increasing their allocation of digital currencies if the regulatory and liquidity conditions improve.
The results of Evertas survey
Source: Evertas
Moreover, 50% of the respondents believe that the cryptocurrencies' investments will become a diversification vehicle due to the low correlation with equities and other types of assets.
The industry takes note each time a high-profile investor announces support for digital assets. Thus recently, the CEO of MicroStrategy, Michael Saylor, revealed that the company had been buying bitcoins to protect the assets from inflation. Moreover, in the latest Bloomberg interview, he said that Bitcoin is less risky than cash and gold at this stage.
We feel pretty confident that Bitcoin is less risky than holding cash, less risky than holding gold," Saylor said. "Once the real yield on our treasury got to more than negative 10%, we realized that everything we are doing on P&L is irrelevant. We really felt we were on a $500 million melting ice cube.
The shares of the company jumped after the announcement. Another famous investor Paul Tudor Jones also recently announced that he holds 1% of its portfolio in BTC.
Waiting for Godot
The cryptocurrency market has been fixated on the institutional involvement in the industry for quite some time now. In 2018 Bitcoin enthusiasts put stakes on Bitcoin futures launched on CME and CBOE. The event was supposed to become a significant milestone for the industry and create a powerful mass adoption impulse.
However, BTC futures went live, but nothing happened. Bitcoin continued moving down and hit bottom on approach to $3,000 before the recovery started.
Then the focus shifted to Bakkt. The subsidiary of Digital Asset Custody Company, backed by the Intercontinental Exchange (ICE), promised Bitcoin futures with physical delivery. The company hoped to entice hesitant investors into the cryptocurrency trading. After a series of delays, Bakkt launched its bitcoin futures contracts in September 2019.
A year has passed, but the results leave much to be desired. According to the Arcane Research data, the amount of BTC contracts held to expiry surpassed the previous record and reached 356 BTC in September. This trend is in line with an uptick on the trading activity as daily trading volumes pushed above $170 million. However, the platform is still far below the market leaders.
As FXstreet previously reported, Bakkt trading activity has little impact on BTC price movements as these stats say nothing about the direction of the trade. Also, the total open interest (OI) has been decreasing in September. After a sharp growth in August, it is now 60% down.
Bakkt Bitcoin Futures
Source: Arcane Research
Now Bitcoiners tout the launch of ETFs as a new pivotal event. The Brazillian fund manager Hashdex is set to launch Bitcoin ETF on the Bermuda Stock Exchange (BSX) in partnership with the American stock exchange Nasdaq. And now that's the real trigger that will unlock the cryptocurrency industry for the institutional investors.
However, the truth is that the industry is just waiting for Godot, someone who will eventually set things right: bring the bullish trend back on track, foster cryptocurrency mass adoption, and make Bitcoin great.
Be careful with what you wish for
The large investors' involvement in the cryptocurrency market will signal that the market is getting more mature. They will help weave the new type of asset in the fabric of the traditional financial markets and, potentially, make it a part of the existing system.
But this coin has a flip side as well. Making Bitcoin a part of the system will deprive it of independent asset status, not controlled by any government or regulator. This may be the price the industry will have to pay for the mass adoption.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks

Crypto Week survives scare as House members scramble to advance procedural motion in a 217–212 vote
House Republicans scrambled to win over holdouts on Wednesday to pass a procedural motion for several crypto bills by a vote of 217–212. The longest House vote in history, which lasted nearly ten hours, will see the GENIUS and CLARITY bills head to the floor for final passage deliberations on Thursday.

Chainlink stabilizes as Westpac and Imperium Markets adopt LINK in Project Acacia
Chainlink (LINK) price is stabilizing at around $16.47 on Thursday after rallying 5% so far this week. LINK announced on Thursday that major institutions, including Westpac Institutional Bank and Imperium Markets, will integrate Chainlink in Project Acacia, thereby boosting institutional use cases.

Top Crypto Gainers: Solana-based meme coins FLOKI, BONK post double-digit gains, CRV targets $1
Solana-based meme coins Floki (FLOKI) and Bonk (BONK) edged lower by 2% at press time on Thursday, following the 30% gains on Wednesday, ranking as top crypto gainers in the last 24 hours. Curve DAO (CRV) ranks third with a 21% surge following a triangle setup breakout, targeting the $1 psychological level.

TRX rises 3% as SRM Entertainment rebrands to Tron Inc
TRON (TRX) gained 3% on Wednesday following Nasdaq-listed SRM Entertainment's (SRM) announcement of its rebrand to Tron Inc. as part of its shift to a TRX treasury strategy.

Bitcoin: BTC hits new all-time high and enters price discovery mode
Bitcoin price prints a new all-time high near $118,900 on Friday, entering uncharted territory as bullish momentum accelerates. The surge in BTC was supported by rising corporate and institutional demand, with spot Bitcoin ETFs recording a total of $1.69 billion this week as of Thursday.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.