Author: Frank Corva, Bitcoin Magazine; Translated by: Deng Tong, Golden Finance
At the recent “MicroStrategy World: Bitcoin for Enterprise” conference, Alex Thorn, head of research at Galaxy Digital, provided valuable insights into the evolving landscape of Bitcoin adoption on Wall Street and in the enterprise.
In an interview with Bitcoin Magazine, Thorn discussed how Wall Street is beginning to accept Bitcoin, its dual nature as a financial asset and technological tool, and how institutional investors are beginning to view Bitcoin as a safe haven asset.
Bitcoin: Financial Asset or Technological Tool?
When asked whether businesses are more likely to view Bitcoin (BTC) as a financial asset or more to leverage its underlying technology, Thorn admitted that it’s probably a bit of both.
“It’s the same question we have for regular users,” he noted. Drawing on insights from LightSpark’s David Marcus, who also spoke at the event, Thorn highlighted how Bitcoin usage varies by region and demand.
In countries where the currency is devaluing, Bitcoin can serve as a store of value. Conversely, in places like Bitcoin Beach in El Salvador, there is a strong enthusiasm for using it as a medium of exchange.
Thorn highlighted the potential for businesses to use bitcoin technology for global remittances.
Thorn said companies could benefit from solutions such as LightSpark, OpenNode and Voltage, which facilitate using Bitcoin’s lightning network as a payment channel without having to hold the assets.
“Honestly, it’s hard to know,” Thorn concluded, noting that both uses are possible, depending on the circumstances.
Bitcoin Universalization
The conversation then turned to Wall Street’s adoption of Bitcoin and the impact of a spot Bitcoin ETF.
Thorn confirmed that Bitcoin is becoming more ubiquitous, thanks in part to the proliferation of available investment vehicles like spot Bitcoin ETFs.
“There are multiple ways to acquire Bitcoin now,” he explained.
“Not only do you have these ETFs that are very accessible to both retail and institutions, but you also have institutional firms over the years — Galaxy being one of them — that have made it easy for institutions to buy spot Bitcoin, not to mention Rivers, Swans, and Coinbase,” he added.
Thorn also pointed to macroeconomic factors driving Bitcoin’s appeal. He noted that financial leaders such as Jamie Dimon and Jay Powell are increasingly recognizing the unsustainability of the U.S. national debt, which has historically been the view of gold advocates.
This recognition makes it an increasingly attractive investment.
“We see this when we talk to macro hedge funds,” Thorn said, before stressing that many hedge funds have been trading Bitcoin for years.
Bitcoin ETFs and Corporate Bonds
Speaking about the potential impact of a spot Bitcoin ETF on corporate finances, Thorn compared it to the gold market after the first gold ETF was approved in 2006.
While he acknowledged bitcoin’s four-year boom and bust cycle throughout its history, he said current interest was driven by more complex factors than in the past.
“This isn’t just a wave of people hearing about Bitcoin for the first time,” Thorn said. It means there’s a deeper, more strategic interest from investors.
Thorn has observed growing curiosity among long-term investors such as endowments and pensions, who are re-engaging in Bitcoin after initial hesitation.
Thorn said these investors have a longer investment time frame and view Bitcoin as a hedge in a volatile risk environment.
“Bitcoin sits in the gap between risk and hedge,” Thorn explained. He said that while Bitcoin is not yet traded as a mainstream hedging tool, its perception is evolving.
Investor Generational Change and Future Adoption
Finally, the discussion touches on the generational dynamics that influence Bitcoin adoption.
Thorn acknowledged that older generations are often hesitant to embrace new technologies. However, he noted that the launch of a spot Bitcoin ETF could ease that transition by streamlining access.
“Younger generations are more [quick to adopt] innovations,” Thorn said, adding that adoption could increase as wealth transfers to younger generations more familiar with Bitcoin.
Thorn also highlighted the role of financial advisors in this shift.
Many people rely on advisors to manage their investments, and with the availability of spot Bitcoin ETFs on wealth management platforms, advisors can introduce Bitcoin into their clients’ portfolios. This could drive significant inflows from the older population, who otherwise might not be willing to directly participate in the asset.
In conclusion, Alex Thorn’s insights at the conference highlighted the multifaceted future of Bitcoin.
Whether as a treasury asset, a technological tool, or a macroeconomic hedge, Bitcoin's role is expanding.
As generational shift occurs and spot Bitcoin ETFs become more common, Bitcoin adoption among businesses and individual investors is bound to grow.
