Why Do Institutions Suddenly Give A Damn About Bitcoin?


No doubt, Bitcoin has gained huge fame and popularity as a digital asset among investors. After the end of 2020’s second quarter, a report came from Fidelity wherein around 800 investors owned 36% of the digital assets in cryptocurrency form. Another survey performed by Evertas (crypto asset insurance company) came up with an outcome that the participants had a belief that there will be a rise in the cryptocurrencies. Also, about 90% of the investors are likely to invest in cryptocurrencies like bitcoin more in the future.

In the future, Bitcoin value might become a hot topic for debate among people. But the reality shows that financial investors and institutions believe that it is not much risk to hold Bitcoins rather than no exposure to Bitcoin.

Blockchain and borderless technology prevailing around bitcoin

Bitcoin is a well-known digital non-sovereign cryptocurrency that holds no correlation with other forms of assets. The investors from different institutes emerge as a tool with diversification to take an edge over the markets with a high correlation like Nasdaq, Dollar, and S&P 500.

Among two aspects wherein a high value is given for the blockchain and bitcoin technologies to all the investors and institutions includes transactions with security and borderless properties and new chances accessible that don’t prevail in the finance traditional markets.

In the changing time, Bitcoin also indulges in adopting innovative solutions like low charges, quick transactions, low contracts, borderless transactions, safe transactions. It might be considered the catalyst that can help secure a future when a break occurs in the nationally accepted currencies.

Custody enhanced solutions for cryptos

Many financial well-established institutions rely on custodians like mutual funds or hedge funds that oblige upon holding clients’ assets with the custodian professionally just for regulatory motives.

Many investors from institutions wary about cryptocurrencies and bitcoins as the regulatory framework existed in the past session. Until now, a major lacking point in the cryptocurrency ecosystem was the absence of custodial institutional-grade solutions for crypto assets. With the rise in requirement for proper custodian solutions to enhance the cryptocurrencies growing amount security measures and rising clarity about the guidelines framed with regulatory considerations for crypto investment and operation, custodian institutional-grade solutions took birth.

With the adoption of such custodian enhanced solutions, it can build a secure network for all the institutions and investors that might be sceptical about it.  It is also helping put a hold over crypto exchanges with an improved standard, leading them to help safeguard investors’ funds from any fraud or theft cases.

Bitcoin demand among institutions

In the crypto market, a rise occurs from institutions’ investments and more firms are investing in cryptocurrencies. As a result, it gave rise to a rally within the crypto market.

As per globenewswire.com, a shift is seen among investors from institutions towards bitcoin holding in a tangible form rather than the futures settled with cash. When talking about the mainstream crypto adoption, a positive signal tends to flow from the institutional investors integrating into the cryptocurrency market and sharing a deep interest in the cryptos. The rising investors sharing an interest in the holdings shows a transition phase from the forms of finance preferred traditionally to the digitalized options. As a result, it also leads to building trust in the crypto market for bitcoins and understanding the fast-changing technology.

Another upside that comes from the decentralized form of financing is serving to both the parties. It has also led to a flow in the business products and services.

The Defi revolution made way for potential advantages that might be why the cryptos dynamic shift towards a digital asset with no borders.

Institutional investors shifting to cryptocurrencies

FDM (Fidelity Asset Management) conducted a survey wherein 80% of the respondents consider digital assets investment more attractive, while a rise occurs in the addresses available for Bitcoin. Also, bitcoin addresses with more than 1,000 to 10,000 BTCs tend to increase. It suggests that investors are likely to pay more attention to Bitcoin.

KPMG (Big Four audit firm) conducted a report wherein several managers, banks, and custodians are coming up with products and services involving cryptos at an institutional level. The investments from institutions in the cryptocurrency show about the trust and appeal towards bitcoin digital assets than other options.


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