From fringe to financial mainstream

As Bitcoin gets more embedded in regulation, institutional portfolios, and financial narratives, questions about its lack of asset backing are becoming less relevant

- ROOPA KUDVA

IN A LANDMARK development, on June 17, the US Senate passed the GENIUS Act, legislation specifically aimed at regulating stablecoins. This marks a new phase for the cryptocurrency ecosystem, boosting clarity and confidence. From a low price of around $3,100 in 2018, Bitcoin has now crossed $2.1 trillion in market value, surpassing Meta, Alphabet, Tesla, and Broadcom.

What started off as a challenge to fiat currencies has steadily evolved into a widely held asset class, and created wealth for many. Here's how that transition unfolded, shaped by institutional moves, regulatory recognition, and evolving investor behaviour.

In 2020, MicroStrategy became the first listed company to hold Bitcoin on its balance sheet as a treasury asset, with Square and MassMutual following suit. By 2021, larger investors began to enter. The US Securities and Exchange Commission approved spot Bitcoin exchange-traded funds (ETFs) in 2024. This opened the door for traditional institutions and retail investors to access Bitcoin through regulated channels, much like gold ETFs.

Throughout 2025, ETFs have continued to drive inflows while global banks have begun developing structured products tied to Bitcoin. There is early talk of sovereign Bitcoin reserves emerging on the horizon.

Policy discourse has shifted from restriction to structured integration. Between 2018 and 2019, a patchwork of regulatory pushback and uncertainty stalled momentum. In 2020, the US started clarifying its tax treatment, with Bitcoin being formally treated as property where gains are taxed as capital gains.