Crypto’s Retail Era Is Over: Institutions Now Set the Market’s Pace, Experts Say

Institutional capital is increasingly steering the direction of the crypto market, as executives from Bitwise Asset Management and Aspen Digital reported at the Token2049 conference. The investor base for Bitcoin has shifted from retail to long-term institutional allocators. Since the launch of spot Bitcoin ETFs, approximately $50 billion has flowed into the market over the past two years, indicating a growing stable demand. U.S. Bitcoin ETFs now hold over $169 billion, equating to roughly 6.8% of the total Bitcoin market value. Institutional investors are treating crypto more as a long-term allocation rather than speculative trades. The infrastructure for institutional participation has matured, with reliable custody solutions available. Both industry leaders noted the increasing perception of Bitcoin as a hedge against the U.S. dollar’s inflationary pressures and expect the trend of steady accumulation to continue despite bursts of volatility. Analysts suggest that the growth in institutional investment has reduced cryptocurrency volatility, fostering a more stable growth environment for Bitcoin, which recently reached a new all-time high.

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