Retail investors find themselves at a crucial crossroads as institutional adoption of Bitcoin accelerates. Sergej Kunz, co-founder of exchange aggregator 1inch, expressed concerns during Cointelegraph’s LONGITUDE event in Dubai. He highlighted that Bitcoin is evolving into an alternative reserve currency, leading to heightened demand from institutions that may soon price out retail investors.
“Every retail user should be thinking about getting at least one Bitcoin — very soon they won’t be able to afford it,” stated Kunz, emphasizing the urgency for individual investors to act before it’s too late. With the potential for the United States to initiate purchases of Bitcoin for a strategic reserve, smaller nations might soon struggle to acquire the cryptocurrency.
Kunz posited that we might witness countries competing over Bitcoin ownership. He asserted that once the U.S. commits to Bitcoin as a reserve asset, it could set off a global scramble for ownership. This increasing institutional interest is partly driven by economic factors, particularly following U.S. tariffs announced by President Donald Trump in April, which ignited a global trade war.
As noted by Yat Siu, co-founder of Animoca Brands, Bitcoin serves as a hedge against inflation and is gaining traction across borders. Different stakeholders recognize that with mounting macroeconomic uncertainty, Bitcoin’s position as ‘digital gold’ is becoming more appealing.
Bitcoin as a Global Reserve Asset?
Recent trends reveal that Bitcoin exchange-traded funds (ETFs) have attracted over $3 billion in inflows during a week in late April, as institutions sought safe-haven assets amidst economic turmoil. Analysts speculate that this growing institutional demand could propel Bitcoin’s price to heights of $200,000 within the year. According to Bitwise’s head of European research, André Dragosch, the price might surpass $1 million by 2029 due to increasing institutional adoption.
David Siemer, co-founder and CEO of Wave Digital Assets, noted that economic unpredictability historically enhances institutional interest in digital assets as a diversification strategy. Data from BitcoinTreasuries.NET indicates that as of May 1, institutional funds and Bitcoin ETFs hold approximately $128 billion worth of Bitcoin, while corporate treasuries account for another $73 billion. Additionally, sovereign states like the U.S., China, and the U.K. hold collectively over $130 billion in Bitcoin, although a significant portion stems from assets seized by law enforcement rather than direct purchases.
As the landscape of Bitcoin ownership evolves, retail investors should remain vigilant and consider their position in this emerging market. The future of Bitcoin as a global reserve asset could fundamentally alter access for average users.
