Why Institutions May Pivot From Passive BTC Exposure to BTCFi
Institutions investing in Bitcoin are increasingly looking to employ their assets productively rather than merely holding them passively. As valuations stabilize and investor demands evolve, digital asset treasuries (DATs) are expected to adopt Bitcoin finance (BTCFi) strategies to earn yield and unlock liquidity. Notably, firms like Anchorage Digital indicate a significant shift as institutions want Bitcoin to serve as collateral or generate rewards, rather than just appreciating in value. This transition requires advancements in custody solutions, risk management, and regulatory clarity, which could facilitate the movement of billions from passive holding to active deployment of BTCFi strategies. As institutional interest grows, particularly among hedge funds and asset managers, the next 12-24 months are seen as crucial for the BTCFi market, potentially leading to broader adoption and integration into existing financial frameworks.
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