In a previous article I reviewed a few factors that affected bitcoin valuations in 2025. After looking at the effects of Miner Rewards Halving (https://www.publish0x.com/make-money-online-with-manuel/did-the-2024-halving-affect-bitcoin-valuations-in-2025-xjyrvwd) we can now look at the second factor that drove bitcoin valuations in 2025, and which will most likely continue as an important factor in the near future.
That factor is the impact of Traditional Financial Institutions that are finally “discovering” the world of crypto assets, with bitcoin being the flagship coin in that space. Institutional involvement has come in different forms, but over all it can be said that these institutions are leading their customers into the crypto environment increasing the value of the market.
Custody Services
Some banks and investment firms have created proprietary cryptocurrency wallets, or have developed platforms that allow their customers to keep their funds in crypto. These solutions exploit the trusted institution’s brand taking advantage of the customer’s perception. They offer secure storage for the user’s crypto.
Trading & Brokerage
Some institutions have integrated crypto trading into their existing platforms, allowing customers to trade, and hold cryptocurrencies directly through their accounts. This is in place of Centralized Exchanges, such as Coinbase or Binance, creating alternate on-ramp services bridging the FIAT and crypto realms. Their customers find this very convenient as it eliminates the need to use credit cards or intermediaries to purchase crypto.
Investment Products
Even though the first US Bitcoin Exchange-Traded Fund (ETF) was approved in 2021, this year ETFs, futures, and structured products tied to Bitcoin or Ethereum saw a year over year doubling in value. Spot bitcoin ETFs were finally approved in 2024, sparking an influx of funds into the bitcoin spot market.
These tools give customers exposure to crypto without needing to hold the assets directly. Investors can therefore move their funds amongst different asset classes in a more straight-forward manner.
Partnerships with Crypto Firms
Collaborations with established crypto exchanges or other fintechs help banks quickly integrate crypto services. This allowed the bank to remain relevant in the face of all the changes in the financial world brought in by the Fintech revolution.
None of these factors are new, but their effect has been amplified by the new US administration’s more crypto-friendly policies. It must be noted that while the arrival of these institutions into the crypto sphere increases the volume of potential investors, it does not mean an eternal bull market.
What is clear is that crypto is consolidating as a veritable asset class and more investors will begin to incorporate it into their portfolios as a way of hedging their risks.
