TL;DR
- In 2024, institutional adoption of Bitcoin accelerated due to the approval of BTC ETFs, increasing its realized capitalization by $300 billion.
- Companies like BlackRock, MicroStrategy, and Marathon Digital have increased their BTC reserves.
- Some experts have expressed concerns about a potential “decentralization” process of Bitcoin.
2024 has marked a turning point in Bitcoin’s history, being a crucial year for its institutional adoption, mainly due to the launch of Bitcoin exchange-traded funds (ETFs).
According to a report by CryptoQuant, the approval of the ETFs by the U.S. Securities and Exchange Commission (SEC) in early 2024 has triggered a wave of institutional investments, leading to an increase of $300 billion in BTC’s realized capitalization. This has been a key factor in positioning BTC as a more accessible and legitimate asset within the corporate sphere.
The ETFs have allowed large institutions to gain exposure to Bitcoin without the need to buy the cryptocurrency directly, attracting giants like BlackRock, which has acquired more than $1 billion in BTC just this week, with a total exceeding $500,000 in assets.
The Role of Institutions and Bitcoin’s Decentralization
However, direct corporate purchases of Bitcoin have also played an important role. Companies like MicroStrategy have exponentially increased their BTC reserves, growing from 189,000 to 402,000 units, solidifying their position as the largest corporate holder. Marathon Digital has also made substantial investments in BTC. Various companies have adopted BTC as a strategic reserve asset, both for its gains and as protection against inflation and the devaluation of fiat currencies.
According to CryptoQuant, the increase in institutional adoption has had a direct impact on Bitcoin’s liquidity and stability. The acquisition of large amounts of BTC by these players has increased its credibility in the markets, which has strengthened its position and supported the cryptocurrency’s price. However, some experts have expressed concerns about a potential “decentralization” process of Bitcoin, as much of the supply could end up concentrated in the hands of institutions, turning it into a more speculative asset.
Furthermore, while the ETFs have been a key driver for BTC adoption, some analysts point out that technical improvements in BTC, such as the Runes protocol, have had a more limited impact on the market, despite these advancements still being relevant within specific sectors of the crypto industry.
