Institutional Involvement in Crypto: Big Players Shaping the Future of Crypto

In the swiftly changing digital finance landscape, institutional involvement in crypto is reaching new heights, marking a transformative phase for the cryptocurrency sector.
A key indicator of this shift is the emergence of institutional-grade platforms, such as the WhiteBIT institutional crypto exchange.
They facilitate the engagement of big players in the digital asset space by offering them professional tools and security.

Among the significant milestones marking the transition to the crypto sector, the approval of 11 spot Bitcoin ETFs by the SEC in January 2024 stands out as an essential event.
This development, alongside other notable events, paints a clear picture of the increasing institutional adoption of Bitcoin and other cryptos.
This article describes some of the important events in the crypto sector - some that have already taken place and some that we should expect:

  • Spot Bitcoin ETFs approval.
  • PayPal intention to expand the use of crypto.
  • The rise of JP Morgan Coin daily transactions.

Spot Bitcoin ETF’s Approval

The recent decision by the SEC to approve spot Bitcoin ETFs marks a significant milestone for the cryptocurrency industry.
This move enhances Bitcoin's legitimacy and accessibility to a wider range of institutional investors.
It presents a regulated and potentially safer investment opportunity than direct cryptocurrency purchases.
The decision is an important step towards integrating digital assets into the traditional financial market and could increase crypto institutional investment.

PayPal's Blockchain Project

In August 2023, PayPal introduced its stablecoin - PYUSD.
In their post "Pay How You Want," the company talked about the revolutionary potential of blockchain technology in reshaping payment systems.
The company does not hide its intention to expand the use of digital assets for payment processing.
PayPal highlights the need for rapid, cost-effective, and global payment solutions.
"Blockchain technology is the only technology that offers a fundamentally new way of doing payments," - the PayPal post states.

The Rise of JP Morgan Coin

The utilization of JP Morgan's JPM Coin has seen an exponential increase, signifying the growing institutional crypto trading activities within traditional finance sectors.
Over a few months, its daily transactions increased from $300 million to over $1 billion.
This event reflects a broader trend of financial institutions using blockchain for efficient, 24/7 financial operations.
One reason for such a surge was the introduction of transactions in multiple currencies (euros, dollars).

Anticipating the BTC halving countdown, we should expect even a bigger surge in institutional adoption of Bitcoin, with more institutions coming to crypto.
The BTC halving has historically been a catalyst for price increases.
With their sizable capital allocations and strategic market approach, institutions can significantly contribute to the bullish momentum leading up to the halving.