The cryptocurrency market has long been defined by its speculative nature, its volatility and its speed of innovation. However, in recent years, one trend has become a stabilizing force in this market, namely the institutional adoption of Bitcoin. From renowned asset managers and investment banks to hedge funds and public companies, all are integrating Bitcoin into their strategies and portfolios. And that raised a major question: Could growing institutional interest be the basis of Bitcoin’s next bull run?
In this detailed blog, you will learn about the institutional adoption of Bitcoin, the main factors driving this change, and assess whether it would trigger the next major wave. Let’s take a look.
Institutional Adoption of Bitcoin – A Timeline of Major Milestones
Bitcoin was launched in 2009 without a market price. However, after early users began mining Bitcoin, it began to gain traction in the crypto market. But in 2016, Bitcoin saw a significant recovery in value. The main reason for this is the increased awareness of people about blockchain technology and the growing interest of several institutional investors. Some crucial times to consider are:
- 2017 to 2018: Bitcoin has been on a historic bull run and in December 2017, it reached an ATH of $19,783. Additionally, CBOE and CME have launched Bitcoin features, making it more legitimate.
- 2019: Launch of new projects such as Libra Project by Facebook and more, increasing the value of Bitcoin.
- 2020: MicroStrategy appears as the first publicly traded company to use Bitcoin. Additionally, companies like PayPal and Square are adopting Bitcoin, triggering its demand and usage.
- 2021: Tesla invests around $1.5 billion in Bitcoin and begins accepting Bitcoin as payment.
- 2023: New technological innovations, such as the Lighting Network, etc., increase the speed of transactions, thereby boosting the popularity of Bitcoin.
- 2024: The launch of multiple Bitcoin Spot ETFs and positive market sentiment helps Bitcoin reach an ATH of $73,835.
- 2025: Due to massive global policy changes and institutional adoption, Bitcoin hits a new ATH at $123,0153.22 in July (Source: Reuters).
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Bitcoin ETF – A major factor behind the rise in value
The approval of a spot Bitcoin ETF by a well-known asset management company, BlackRock, is a major driver of the current Bitcoin trend. BlackRock’s iShares Bitcoin Trust holds over 662,000 Bitcoins, indicating positive BTC adoption. On the other hand, Fidelity’s purchase of BTC for $25 million and Trump Media’s $2.5 million investment are now boosting market liquidity and confidence.
Many market analysts have predicted that Bitcoin ETFs could unlock billions in capital and could become “digital gold.” ETFs can be said to significantly reshape value and position BTC as a major asset class with impressive long-term growth potential.
Bitcoin Price Forecast: 2025 to 2030
This Bitcoin price prediction for 2025 to 2030 is based on halving events, increased institutional adoption, and historical market cycles.
By the end of 2025, Bitcoin is predicted to trade between $100,000 and $135,000. In 2026, the value would be around $140,000. The upcoming halving cycle could influence the supply and demand of Bitcoin. This could push the value even higher, around 150,000 USD to 250,000 USD (source: CoinDCX).
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Reasons Behind the Growing Adoption of Bitcoin by Institutions
Bitcoin is now widely used by asset managers, banks, hedge funds and publicly traded organizations seeking inflation hedges and diversification. Here are some major reasons for the growing institutional adoption of Bitcoin.
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Store of value characteristic
BTC’s fixed supply (maximum 21 million coins) and decentralized nature have made it an impressive hedge against currency devaluation as well as inflation.
Recent regulatory changes, such as clearer guidelines, the introduction of the CLARITY Act and robust frameworks, have reduced the risk of crypto investing.
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Technological innovations
Latest innovations such as AI-based crypto transaction analysis and MPC, or Multi-Party Computation, have significantly improved security. Additionally, advanced OES off-exchange settlement systems and other similar risk mitigation models build confidence in this area.
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Portfolio diversification
Many institutions view Bitcoin as an independent asset capable of increasing risk-adjusted returns in their diversified portfolios.
High net worth individuals as well as institutional clients are now interested in cryptocurrencies. Keeping this in mind, institutions have started offering BTC-related products and services.
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How much Bitcoin do companies own?
According to recent data, institutional investors around the world hold a significant portion of Bitcoin’s supply. Check out the table below to get a clear idea of how much of Bitcoin is held by institutional investors.
| Category | BTC holding | Major players |
| Public companies | Above 554,670 BTC | Robinwood Markets, MicroStrategy, Tesla, Hut 8 Mining Corp and Marathon Digital Holdings |
| Private companies | Around 297,000 BTC | Sone Ridge Holdings Group, Block.one, Tether Holdings and Mt. Gox |
| Bitcoin ETF and other funds | More than 1,200,000 Bitcoins | iShares Bitcoin Trust |
| Governments | Around 307,000 BTC | EI Salvador, Kingdom of Bhutan, Government of Bulgaria, and Government of the United States |
(Source: River)
This information suggests that the institutional adoption rate of Bitcoin is increasing. They now control about 10% of the total Bitcoin supply, and over time this is increasing.
Long-term impact assessment
Institutional adoption and growing interest in Bitcoin from the world’s top-rated financial institutions can make this digital asset more robust. Compared to retail investors, tech giants, hedge funds and holding companies have more capital and longer time horizons. This clearly indicates a massive increase in Bitcoin buying activity and a notable drop in volatility. Additionally, these growing adoptions may also have a large impact on regulation, making Bitcoin adoption or investment more accessible and simpler for everyone.
Will Institutional Bitcoin Adoption Drive the Next Bitcoin Bull Run?
Well, even though the future of Bitcoin looks very promising, you shouldn’t ignore the potential risk. For example, a sudden change in regulations and a major crisis can affect the institutional adoption of crypto. However, looking at the current market data, it can be said that the adoption rate is positive and it is also reshaping the cryptocurrency landscape.
This adoption creates credibility, long-term vision and capital in a market that was once considered a huge risk. It has now acquired a place on the balance sheets of some large companies. It may not be able to trigger a rise in Bitcoin in the future, given the involvement of other factors, but it lays a solid foundation for mass adoption and sustainable growth.
*Disclaimer: The article should not be considered and is not intended to provide investment advice. The claims made in this article do not constitute investment advice and should not be relied upon as such. 101 Blockchains will not be liable for any loss suffered by any person who relies on this article. Do your own research!
