Author: Crypto Unfiltered

For many years, Bitcoin has been regarded as a crazy experiment—thing exclusively to techno-dogs, liberals, criminals and cyber-freaks. Wall Street thinks it's too volatile and too risky, and frankly, it's not worth their time.

Fast forward to today, and the institutions that once mocked Bitcoin are now included in their portfolios. Hedge funds, investment companies and asset managers are not only buying Bitcoin — they are also building products around it.

The change is that Bitcoin is proving its value.

Bitcoin: New Gold on Wall Street?

For decades, gold has been the first choice asset in times of inflation and uncertainty. But today, Bitcoin is becoming a strong contender.

VanEck—CEO Jan van Eck, one of the largest asset managers in the gold ETF space—says bluntly:

"I think of Bitcoin very different from other digital assets. I see it as a store of value asset, a type of gold-like."

Bitcoin and gold both rose in 2023—gold rose by 50%, while Bitcoin more than doubled. Meanwhile, central banks have hoarded gold at record levels, showing growing distrust of the dollar.

Bitcoin and gold do not compete with each other, but become ally in the ever-evolving financial landscape.

The "de-dollarization" effect

Another major factor driving the rise of Bitcoin is the gradual alienation of the US dollar on a global scale.

After the U.S. freezes Russian financial reserves due to the Ukrainian invasion, many realize that their dependence on the dollar has made them vulnerable. Like India, which is expected to surpass the entire European economy in the next decade, is actively looking for alternatives.

Bitcoin as a neutral, borderless assets are an obvious choice. It is not under any control, making it a powerful hedge against financial constraints and instability.

Bitcoin ETF: The entrance to institutional funds

The real turning point occurred in early 2024: U.S. regulators approved Bitcoin spot ETFs.

These ETFs managed by financial giants such as BlackRock, Fidelity and VanEck allow institutions to invest in Bitcoin without the complexity of wallets or self-custody.

The impact is also immediate:

hedge funds become the largest buyers, using ETFs to conduct arbitrage opportunities.

Investment advisors who manage billions of funds are now starting to allocate Bitcoin to their client portfolios.

BlackRock publicly stated that it plans to include Bitcoin in every investment portfolio.

This is exactly the same as the gold ETF pattern we saw in the early 2000s—gold became easier to invest, and demand soared. Bitcoin is now on the same path.

Bitcoin-backed investment expansion

Wall Street has not stopped at ETFs. It is launching a wave of new Bitcoin-related financial products, including:

Leveraged Bitcoin ETFs—a fund that provides 2x Bitcoin price fluctuations exposure.

Bitcoin Funding Company—a listed company that holds Bitcoin as a reserve asset.

Fixed Income Funds—Some asset management companies are exploring the inclusion of Bitcoin into their bond portfolios.

The global rise of Bitcoin

While the United States is leading the way in ETF adoption, real Bitcoin demand may come from outside the traditional financial system.

Obviously, sovereign wealth funds in the Middle East have shown interest and are quietly exploring the use of Bitcoin as a strategic asset.

Don't forget there are other factors. In the United States, Donald Trump’s new focus on Bitcoin is affecting institutional sentiment. As a Wall Street person said:

"If Trump cares about Bitcoin, I care about Bitcoin."

Whether you like him or hate him, his influence is real.

Finally thinking: The inevitable fusion of Bitcoin

Bitcoin has gone through a classic cycle of innovation:

First, people ignore it. Then, people fight it. Now, people are accepting it.

Bitcoin is expanding at an amazing speed with ETFs, enterprise adoption and growing global demand. Interestingly, it was originally created to exist outside of traditional finance, but now Wall Street is promoting its rise.

Is this a victory of Bitcoin's original concept, or is it a sign that it is absorbed by traditional systems? We can discuss this issue another day. But one thing is clear:

Bitcoin is not just for Wall Street. And Wall Street is also adapting to Bitcoin.