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Bitcoin News Update: Institutions Choose Bitcoin as Protection Against Inflation, Not as a Payment Method

Bitcoin News Update: Institutions Choose Bitcoin as Protection Against Inflation, Not as a Payment Method

Bitget-RWA2025/11/23 09:50
By:Bitget-RWA

- BlackRock highlights rising institutional demand for Bitcoin as a "digital gold" hedge against inflation, not a payment tool. - Abu Dhabi's ADIC tripled its $517.6M stake in BlackRock's IBIT ETF, reflecting confidence in Bitcoin's long-term value preservation. - BlackRock develops a staked Ethereum ETF but faces regulatory hurdles, while crypto treasury firms like FG Nexus struggle with asset valuation pressures. - Institutional adoption accelerates globally, with Latin America expanding crypto infrastru

BlackRock Inc. is experiencing heightened interest in

as a digital asset for value preservation, with more institutional investors now viewing it similarly to gold rather than as a payment method. This pattern is highlighted by recent actions from major institutions such as the Abu Dhabi Investment Council (ADIC), which , demonstrating strong belief in Bitcoin’s potential as a long-term holding. ADIC, a branch of Mubadala Investment Co., worth $517.6 million, illustrating a strategy to diversify with assets that can protect against inflation and economic instability.

This transition reflects a wider movement among institutions to embrace Bitcoin as “digital gold.” Recent research points out that Bitcoin’s fixed supply of 21 million coins, combined with its global liquidity and round-the-clock trading, makes it a compelling alternative to conventional stores of value like gold.

for its ability to maintain value amid inflation and geopolitical uncertainty. BlackRock’s own disclosures and market insights support this trend, noting that investors are focusing more on Bitcoin’s hedging capabilities than its use for transactions .

At the same time,

is broadening its range of crypto products. The company is working on a staked trust ETF, aiming to incorporate staking rewards into its Ethereum offerings. However, this initiative , since staking brings additional complexities in custody and security. The SEC’s recent approval of a general listing framework for crypto ETFs has made the process smoother, but there are still hurdles in balancing innovation with investor safeguards .

There are also obstacles facing institutional adoption of Bitcoin.

to ensure their share prices reflect the underlying value of their crypto assets. FG Nexus recently liquidated nearly 11,000 ETH to finance share repurchases, a move that temporarily pushed down Ethereum’s price and highlights the vulnerability of some crypto investment vehicles. Despite these issues, the overall trend of institutional involvement is accelerating, , where stablecoins and crypto infrastructure are seeing rapid growth.

The regulatory environment remains a key consideration. Although the SEC under the Trump administration has shown a willingness to approve new crypto ETFs, there are still unresolved questions regarding staking, tokenization, and international compliance.

, a crypto platform in Latin America, highlights ongoing efforts to strengthen institutional-grade stablecoin systems, further embedding digital assets in the global financial landscape.

As BlackRock and other companies adapt to this changing market, the distinction between traditional and digital assets continues to

. With Bitcoin’s market value now exceeding $1 trillion and institutional participation on the rise, — rather than as a means of payment — is likely to shape the next stage of cryptocurrency adoption.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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