ETFs and companies are driving Bitcoin's institutional acceptance

The introduction of Bitcoin spot ETFs in January 2024 was a watershed moment in the cryptocurrency's institutional acceptance. To avoid the complications of direct ownership, these ETFs have made Bitcoin exposure available to institutional and ordinary investors in a regulated way.

Eleven Bitcoin-related exchange-traded funds (ETFs) had more than one million Bitcoin at the end of the year. This amounted to five percent of the 19.79 million Bitcoins in circulation and four and a half percent of the entire 21 million Bitcoins in circulation. This exemplifies strong demand from institutions and further establishes Bitcoin's place in conventional finance.

According to Darius Sit, Founder & Chief Investment Officer of QCP Singapore's digital assets business, "I have never been more bullish on Bitcoin" (FXStreet, exclusive interview translation).

According to him, Bitcoin is making a big splash in more conventional markets, especially when it comes to loan finance. Equity finance is beginning to influence the way nations, businesses, and people plan for the future and access capital, according to Sit.


In 2024, there was a boom in both institutional and corporate interest in Bitcoin. The artificial intelligence (AI) cloud analytics firm MicroStrategy (MSTR) increased its Bitcoin holdings from 189,000 BTC at the beginning of the year to 423,650 BTC, firmly establishing itself as the biggest corporate holder of Bitcoin.


Companies including Riot Platforms (RIOT), Marathon Digital (MARA), Galaxy Digital Holdings (GLXY), Tesla (TSLA), and others have followed MicroStrategy's lead and adopted Bitcoin accumulation techniques, indicating a rising interest in Bitcoin among corporations. The rationale behind the decision was to hold onto the asset for the long haul and use it as a buffer against potential macroeconomic downturns.

Big sellers like the US and German governments, as well as the now-defunct Mt. Gox exchange, were protected by these institutional needs and the army of corporates.

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