This growth is expected to be driven by increasing interest from sovereign wealth funds, public corporations, state treasuries, and institutional vehicles like exchange-traded funds (ETFs).

Bitcoin’s Evolving Role as a Global Store of Value

As BTC continues to mature, Bitwise argues that it is no longer just a speculative asset. Instead, it is becoming a serious contender as a global store of value. The report notes that there is a structural shift happening—wealth is gradually moving away from traditional safe havens like gold and flowing into BTC.

Spot Bitcoin ETFs Outpace Expectations

Spot Bitcoin ETFs in the United States have already shattered expectations. In 2024 alone, they attracted over $36.2 billion in net inflows. According to Bitwise, this outpaced the early performance of SPDR Gold Shares (GLD)—the most successful commodity ETF in history—by a factor of 20.

Within just a year, U.S. Bitcoin ETFs accumulated $125 billion in assets under management (AUM), signaling deepening interest from both retail and institutional investors. Bitwise projects that inflows could rise to $100 billion annually by 2027.

However, around $35 billion in capital remained sidelined in 2024 due to compliance restrictions at major financial institutions like Morgan Stanley and Goldman Sachs. These firms are expected to loosen their policies as Bitcoin ETFs continue to prove their resilience.

Institutions and Governments Eye Bitcoin Reserves

Bitwise highlights Bitcoin’s growing appeal beyond Wall Street. Public companies currently hold over 1.1 million BTC, valued at more than $125 billion. Sovereign governments hold over 500,000 BTC collectively, led by the U.S., China, and the U.K.

In its base case scenario, Bitwise envisions a modest reallocation of institutional and sovereign assets into Bitcoin—just 5% of gold reserves by governments and 0.5% of assets from major wealth platforms. Even under these conservative assumptions, total Bitcoin inflows could reach $420 billion over 2025–2026.

In a more aggressive bull case, with 10% of gold holdings and 1% of managed portfolios moving into BTC, inflows could surge past $426 billion, absorbing more than 4 million BTC—around 15% of total supply.

This projected capital shift signals not only deepening institutional trust in Bitcoin but also a broader financial transformation that could redefine the role of digital assets globally.

The post Billions to Flow Into Bitcoin by 2026, Bitwise Forecasts appeared first on Coindoo.

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Filed under: Bitcoin - @ May 25, 2025 6:01 pm