Institutional adoption of bitcoin is accelerating as supply and demand factors shift and financial giants begin to take notice.
Last week, inflows to crypto investment products rebounded to top $430 million thanks in large part to Bitcoin ETFs, according to CoinShares.
Roundtable anchor Rob Nelson discusses these developments with Brian Dixon, CEO of Off The Chain Capital and Kelly Kellam, Director at BitLab Academy, to explore the drivers behind bitcoin’s growing institutional presence.
Nelson kicked off the chat by emphasizing the role of supply and demand, suggesting that a supply buildup is on the horizon due to growing interest from various sectors. “You’ve got the big ETFs planning more, retail being spread out, and sovereign wealth funds coming in,” he notes, pointing to the potential influx of institutional players yet to be fully seen.
Brian Dixon agreed with the outlook, adding that institutional investors typically undergo lengthy due diligence processes before deploying capital. “These ETFs were launched [at the beginning of the year] and I anticipate we’ll see larger allocations from institutions as their diligence timelines close,” he says, pointing out that these processes can take 12 to 18 months.
Kelly Kellam highlights how institutional involvement is transforming the market, with major financial players like Jamie Dimon now engaging with bitcoin. “The data suggests that, as slow as people think it’s moving, the rate of adoption is unprecedented,” he notes, explaining that institutions are finally warming up to bitcoin’s potential as a secure asset class.
Looking ahead, both Dixon and Kellam believe the increasing availability of on-chain data and the growing acceptance of bitcoin by financial powerhouses will lead to significant institutional and retail investment. Kellam predicts, “Over the next two years, we’re going to see an absolute explosion in appetite from both retail institutions and big money.”