David Okoya
4 min read
In This Article:
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A recent report suggests that the influx of institutional capital into Bitcoin may only just be starting.
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The report suggests Bitcoin interest from a heterogeneous group of investors.
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The anticipated demand for Bitcoin is likely to drive its price significantly higher.
For years, Bitcoiners said institutions were coming. Now, without a doubt, they are finally here.
Last year, spot exchange-traded funds backed by the asset saw nearly $37 billion in inflows, and several corporations jumped on the Bitcoin treasury strategy popularized by MicroStrategy (NASDAQ:MSTR).
A recent report suggests that the influx of institutional capital into Bitcoin may only just be starting.
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Bitcoin will see $427 billion in institutional inflows by the end of 2026, according to a UTXO and Bitwise joint report last week. This number includes $120 billion expected to flow in this year, the report said.
UTXO and Bitwise analysts expect public corporations to accumulate up to 1 million BTC by the end of 2026. At the same time, they expect the number of Bitcoin treasury firms to double.
MicroStrategy already holds over 580,000 BTC with plans to purchase an additional $84 billion worth of BTC through 2027. Meanwhile, firms like Semler Scientific (NASDAQ:SMLR), Metaplanet and GameStop continue to accumulate. There are also new firms emerging, like Twenty One, a venture backed by Tether and SoftBank. Twenty One revealed plans to launch with 42,000 BTC, and its CEO, Jack Mallers, has suggested that the firm plans to surpass MicroStrategy’s Bitcoin holdings.
Another anticipated driver for the predicted Bitcoin demand is U.S. states.
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Earlier this month, New Hampshire became the first state to enact a law allowing its state treasury to invest in digital assets with market caps exceeding $500 billion. Currently, this includes only Bitcoin. Texas may be set to follow suit, as similar legislation has passed in the state House and is headed to the state Senate for approval of changes made in the lower chamber. If these changes are approved it would go to the desk of Gov. Greg Abbott, who has signaled support for the bill. Meanwhile, Arizona Gov. Katie Hobbs vetoed a bill that would have made the state treasury an active buyer of digital assets, but signed another into law allowing the state to build a reserve from seized digital assets.
