Summary:
•Bitcoin’s recent surge, driven by the launch of exchange-traded funds (ETFs), has sparked strong interest from institutional investors.
•Industry experts foresee the future trend of asset tokenization, emphasizing that digital physical assets increase liquidity and transparency.
•Additionally, BTC’s appeal as an inflation hedge and its potential to surpass gold’s market capitalization also add to investor appeal.
Bitcoin surged nearly 50% earlier this year, driven largely by the launch of a Bitcoin exchange-traded fund (ETF). These ETFs greatly facilitate retail and institutional investors’ access to leading cryptocurrencies.
Recent price action has sparked discussion among industry leaders about why institutional players are increasingly attracted to the cryptocurrency market.
Why institutions are interested in Bitcoin
In a recent interview, Chainlink founder Sergey Nazarov noted that the influx of new investors into the Bitcoin market is coming from the global financial system in anticipation of the next evolutionary stage in the cryptocurrency space: the tokenization of real-world assets. Nazarov emphasized that major financial institutions are preparing for the tokenization of assets, aiming to compete with ETFs or use ETFs to obtain capital.
“The next stage is asset tokenization, when banks see all this money flowing into ETFs, and then they mint assets to compete with the ETF or capture some of the capital,” he said.
Tokenization (aka “tokenization”) is the conversion of asset rights into digital tokens on the blockchain. The process promises enhanced liquidity, transparency and efficiency for digitizing physical assets. McKinsey cites industry experts predicting that By 2030, tokenized trading volume in digital securities could reach $5 trillion.
Likewise, BlackRock CEO Larry Fink believes that tokenization represents a major technological breakthrough with the potential to transform asset management.
Fink explained, “We have tokenization technology today. If you have tokenized securities and identities, when you buy or sell securities on the ledger, all of that is created together. If you want to talk about preventing money laundering , through the tokenization of the system, all elements of corruption are eliminated.”
According to US presidential candidate Robert Kennedy Jr., another important factor driving institutional interest in Bitcoin is that Bitcoin is seen as a hedge against inflation. Kennedy noted that Bitcoin’s recent price performance further enhances its credibility as a safe haven from central banks’ money-printing tendencies.
He also emphasized the importance of Bitcoin in terms of freedom of transactions and likened it to freedom of speech.
"We need to make sure that people who want to protect themselves from inflation can have that right and that they can have the freedom to transact, and the government can't digitize our currency like Canada is doing," Kennedy said.
Finally, Galaxy Digital CEO Mike Novogratz believes that Bitcoin’s growth potential will continue to attract “a new army of buyers.” According to him, baby boomers, who control $85 trillion in global assets, may enter the Bitcoin market through the recently launched Bitcoin ETF. He hinted that more than half of registered investment advisors (RIAs) could drive the process.
Novogratz further suggested that Bitcoin’s market capitalization could one day exceed that of gold. The expert based this prediction on the fact that younger generations, especially Generation Z and Millennials, prefer Bitcoin to traditional assets such as gold. #机构 #比特币
