At the recent MicroStrategy World: Bitcoin for Corporations conference, Alex Thorn, Head of Research at Galaxy Digital, provided valuable insights into the evolving landscape of Bitcoin adoption by Wall Street and corporations.
In an interview with Bitcoin Magazine, Thorn explored how Wall Street has begun to embrace Bitcoin, the dual nature of Bitcoin’s role as both a treasury asset and a technological tool, and how institutional investors are beginning to see bitcoin as more of a safe haven asset.
Thorn acknowledged that corporations are likely to view Bitcoin (BTC) as both a treasury asset and utilize its underlying technology. He noted that the use of Bitcoin varies by region and need, with some countries using it as a store of value and others embracing it as a medium of exchange.
Thorn emphasized the potential for corporations to leverage Bitcoin technology for global money transfers, highlighting solutions like LightSpark, OpenNode, and Voltage that facilitate the use of Bitcoin’s Lightning Network as a payment rail without necessarily holding the asset.
The conversation then shifted to Wall Street’s adoption of Bitcoin and the effect of spot Bitcoin ETFs. Thorn confirmed that Bitcoin is becoming more normalized, partly due to the proliferation of accessible investment vehicles like spot Bitcoin ETFs. He noted that there are multiple ways to access bitcoin, including ETFs and institutional companies like Galaxy Digital.
Thorn also pointed out the macroeconomic factors driving Bitcoin’s attractiveness, such as the unsustainability of US national debt and the growing acknowledgment among financial leaders. He highlighted the interest from macro hedge funds and the evolving perception of Bitcoin as a hedge in a volatile risk environment.
Addressing the potential impact of spot Bitcoin ETFs on corporate treasuries, Thorn drew parallels with the gold market post-2006 and suggested that current interest in Bitcoin is driven by more sophisticated factors than in the past. He observed a growing curiosity among long-term investors like endowments and pensions, who see bitcoin as a hedge in a volatile risk environment.
The discussion also touched on generational dynamics influencing Bitcoin adoption, with Thorn noting that younger generations are more likely to adopt innovation. He highlighted the role of financial advisors in introducing Bitcoin to older demographics through wealth management platforms.
In conclusion, Alex Thorn’s insights from the conference underscore the multifaceted future of Bitcoin. Whether as a treasury asset, a technological tool, or a macroeconomic hedge, Bitcoin’s role is expanding. As generational shifts occur and spot Bitcoin ETFs become more prevalent, Bitcoin’s adoption among corporations and individual investors alike is poised to grow.