Why are institutional investors increasingly drawn to Bitcoin?
Institutional investors are drawn to Bitcoin due to its scarcity, decentralized nature, and potential for high returns. With a fixed supply of 21 million coins, Bitcoin offers a hedge against inflation and currency devaluation. Institutions appreciate Bitcoin’s growing liquidity and the emergence of regulated products like ETFs and custody solutions. As more established financial firms enter the market, Bitcoin gains credibility and becomes integrated into diversified portfolios. Additionally, Bitcoin’s digital and borderless nature allows for easier global transactions compared to traditional assets. While its volatility remains a challenge, long-term trends and the potential for digital store-of-value status continue to attract institutional capital, driving both demand and market stability.