96% of Wall Street Giants Choose 'Bitcoin'... What's the Real Reason for Increasing Virtual Asset Holdings?

▲ Bitcoin (BTC), Wall Street/ChatGPT generated image

As major institutions in the global capital market begin to actively incorporate virtual assets as core assets in their portfolios, expectations for institutional fund inflows are growing.

According to crypto-specialized media BeInCrypto on May 7 (local time), major institutional investors worldwide are preparing to significantly increase their virtual asset investment allocation within the next few years. In a recent survey conducted by Laser Digital, Nomura's digital asset subsidiary, 96% of professional investors stated that they trust virtual assets as a key means for asset diversification. Fund managers noted that digital assets, including Bitcoin (BTC), show a low correlation with traditional financial products, evaluating them as assets that can diversify risk during market downturns.

Key factors accelerating institutional fund inflows include improved regulatory environments and advanced investment infrastructure. With Bitcoin spot ETFs settling into the market, even conservative institutions that were previously reluctant to invest in virtual assets have now secured legitimate and familiar investment channels. Jez Mohideen, CEO of Laser Digital, stated that institutional investors are no longer at the stage of questioning the existence value of virtual assets, but rather at the stage of adjusting investment scale and entry timing. Many survey respondents indicated plans to allocate up to 5% of their total assets under management to virtual assets within the next three years.

However, high price volatility and differing regulatory frameworks across regions were still identified as barriers that institutional investors must overcome. Many fund managers cited the drastic price fluctuations in the virtual asset market as a major factor causing hesitation in expanding investments. The varying regulatory approaches in major economic blocs like the US and Europe were also mentioned as a burden, creating significant uncertainty in the process of establishing global investment strategies. Nevertheless, with the expansion of real-world applications of blockchain technology, the appeal of virtual assets from a long-term investment perspective is reportedly increasing.

Institutional investors are driving changes in market structure by accepting virtual assets not merely as speculative tools but as an independent asset class. Unlike past speculative markets dominated by retail investors, the expansion of institution-centric fund inflows is further deepening market liquidity. The potential launch of various digital asset investment products, including Ethereum spot ETFs, is also acting as a factor stimulating institutional demand. As the big players in the global capital market begin to move, the virtual asset market has entered a turning point for asset revaluation.

The virtual asset market is moving beyond institutional integration to expand its combination with the mainstream financial system. Investment experts are refining asset allocation strategies by monitoring changes in macroeconomic liquidity and the process of establishing global regulatory standards. The continuous entry of institutional investors is increasing market confidence and simultaneously strengthening the trend of virtual assets, including Bitcoin, establishing themselves as a major pillar of the global financial ecosystem.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*