Why more insto investors will look to hold crypto

Until recently, crypto’s standing amongst money managers was largely as a fringe asset — volatile, speculative, and too unruly for the buttoned-down world of institutional investing. But that world is changing, fast.

- Vakul Talwar, general manager, Australia, Crypto.com

More institutions are waking up to the reality that crypto isn’t going away. New routes to ownership are emerging — offering more regulated ways to access Bitcoin, from ETFs to a growing number of licensed custodians, and institutional-grade OTC desks.

Some of the most risk-conscious stewards of capital in the world have recently come aboard. The first spot Bitcoin ETF was given the green light by the US regulator in January 2024, and major asset managers BlackRock, Vanguard, and Fidelity have entered the market since. Charles Schwab, arguably one of the most conservative names in wealth management, is now offering crypto services. Sovereign wealth funds in Switzerland and Abu Dhabi are exploring digital assets. In the US retirement market alone, crypto IRAs (individual retirement accounts) are forecast to hit US$100 billion in five years.

At Crypto.com, we’re in constant dialogue with investors, policymakers, and consumers across the globe, and it’s clear the next decade will see a surge in institutional allocation to crypto assets here in Australia. Regulation is catching up, both here and globally - and, perhaps most importantly, Australians themselves are increasingly seeking crypto within their portfolios.