The Evolving Landscape of Bitcoin Adoption by Wall Street and Corporations: Insights from Alex Thorn of Galaxy Digital

At the recent MicroStrategy World: Bitcoin for Corporations conference, Alex Thorn, Head of Research at Galaxy Digital, shared valuable insights into the evolving landscape of Bitcoin adoption by Wall Street and corporations. In an interview with Bitcoin Magazine, Thorn delved into how Wall Street has started 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 discussed whether corporations are more likely to view Bitcoin as a treasury asset or utilize its underlying technology. He acknowledged that there would likely be a mix of both approaches, similar to how regular users approach Bitcoin. Thorn highlighted how Bitcoin’s use varies by region and need, with some countries using it as a store of value in the face of depreciating currencies, while places like Bitcoin Beach in El Salvador show enthusiasm for using it as a medium of exchange. Thorn emphasized the potential for corporations to leverage Bitcoin technology for global money transfers, citing solutions like LightSpark, OpenNode, and Voltage.

The conversation then shifted to Wall Street’s adoption of Bitcoin and the impact of spot Bitcoin ETFs. Thorn noted that Bitcoin is becoming more normalized, partly due to the accessibility of investment vehicles like spot Bitcoin ETFs. He highlighted the various ways to access bitcoin, including ETFs and institutional companies like Galaxy Digital. Thorn also pointed out macroeconomic factors driving Bitcoin’s attractiveness, such as concerns about US national debt and the growing interest from macro hedge funds.

Addressing the potential impact of spot Bitcoin ETFs on corporate treasuries, Thorn drew parallels with the gold market post-2006. He observed a growing curiosity among long-term investors like endowments and pensions, who see bitcoin as a hedge in a volatile risk environment. Thorn noted that while bitcoin is not yet trading as a mainstream hedge, its perception is evolving.

Thorn also discussed generational dynamics influencing Bitcoin adoption, noting that younger generations are more likely to adopt innovation quickly. He highlighted the role of financial advisors in introducing bitcoin to older demographics through wealth management platforms. Thorn’s insights underscored the multifaceted future of Bitcoin, whether as a treasury asset, a technological tool, or a macroeconomic hedge. As generational shifts occur and spot Bitcoin ETFs become more prevalent, bitcoin’s adoption among corporations and individual investors is poised to grow.