Wall Street veteran Jordi Visser predicts a surge in Bitcoin investment from US institutional investors before the year’s end. He expects this to really pick up in the fourth quarter as fund managers prepare their portfolios for 2025. Some will make small adjustments, while others might significantly increase their Bitcoin holdings.
Institutional Interest is High
A recent survey by Coinbase and EY-Parthenon shows strong institutional interest in crypto. A whopping 83% of respondents plan to boost their crypto investments in 2025, with 59% aiming for over 5% of their assets under management to be in crypto or related products. This suggests widespread preparation for greater crypto adoption in investment portfolios.
Plans vs. Reality
While intentions are strong, things can change. Regulations, market volatility, and unexpected economic events could impact buying activity. However, the sheer number of institutions expressing intent significantly increases the likelihood of actual investment. The timing and scale of these investments remain uncertain, though.
ETFs Fueling the Fire
Bitcoin exchange-traded funds (ETFs) have seen massive inflows this year, making it easier for institutions to buy Bitcoin. Daily inflows have reached $642 million, and cumulative inflows since launch are around $57 billion, pushing total ETF assets to approximately $153 billion. Continued ETF inflows could provide consistent demand for Bitcoin.
ETFs: A Game Changer
ETFs offer large funds a familiar investment vehicle, lowering barriers to entry. If Visser’s prediction of increased allocations in Q4 is correct, much of this buying will likely flow through ETFs initially.
Corporate Bitcoin Holdings
Many public and private companies already hold Bitcoin. Public companies alone hold roughly $112 billion worth, and companies like MicroStrategy continue to increase their holdings. These corporate purchases often generate significant market attention and contribute to overall demand.
The Crucial Period: Q4
Based on current reports and surveys, the fourth quarter of 2024 is the key period to watch. If institutions follow through with their plans, Bitcoin could receive substantial support. However, investors should brace for market fluctuations, as policy changes, interest rates, or liquidity issues could disrupt the flow of investments.
In short, while the signs point to increased Bitcoin adoption by traditional finance institutions, several factors could influence the actual outcome.