Bitcoin's Institutional Adoption Surges 16.1% in Q1, Driving $1 Million Price Forecast by 2029
3min read Bitcoin is entering a new phase of financial maturity as institutional interest accelerates and novel yield-generating strategies emerge. Executives from bitwise and Solv Protocol highlighted how developments such as staking integrations, lending markets, and record-setting ETF inflows are driving Bitcoin’s evolution from a passive asset to a dynamic financial instrument. With forecasts placing Bitcoin’s future price at over $1 million by 2029, the digital asset’s role in global finance appears to be expanding far beyond its original use case.
Bitcoin may be on a path to unseat gold as the world’s dominant store of value, with Bitwise Asset Management forecasting that the world’s largest cryptocurrency could reach $1 million per coin by 2029. This prediction hinges on accelerating institutional adoption and what is called “structural inflows” from financial products like exchange-traded funds (ETFs).
Gold currently reigns as the world’s largest asset class, with a market capitalization of over $21.7 trillion. By comparison, Bitcoin’s market cap is a modest $1.9 trillion, placing it as the seventh-largest asset globally. Despite this gap, Bitcoin has the potential to close in on gold — not just in valuation, but in perceived utility as a reliable store of value. As institutions pour in and new financial infrastructure builds around the asset, the narrative of Bitcoin as "digital gold" is gaining traction.
For the current market cycle, Bitcoin may surpass $200,000 under “base case” conditions. However, that price target could more than double if the US government adopts Bitcoin as part of its strategic reserves. This potential policy pivot could mark the beginning of sovereign adoption, a transformative shift that would upend current projections and “change everything.”
Ask Aime: Is Bitcoin set to overtake gold as the world's largest asset class?
One of the most significant tailwinds for Bitcoin’s growth has been the explosive debut of US-based spot Bitcoin ETFs in early 2024. These structural inflows, driven by mainstream investment vehicles, could extend the duration and intensity of the current Bitcoin cycle — breaking away from the traditional four-year halving-based rhythm that has defined prior bull markets.
Another major factor in Bitcoin’s future trajectory is the adoption by US wirehouses — financial firms which collectively manage over $10 trillion in client assets. Once these wirehouses open up their distribution channels to US Bitcoin ETFs, it’s going to be a huge wave of capital that enters the market. Wirehouses serve as a crucial gateway for high-net-worth individuals and institutional clients, meaning that any shift toward Bitcoin exposure in these firms could represent a massive reallocation of capital toward digital assets.
While $1 million Bitcoin by 2029 might sound bold, this forecast echoes broader trends in hyperbitcoinization theory, which suggests that Bitcoin could become a dominant monetary base layer globally. However, even proponents admit the road to $1 million won't be linear. Regulatory risks, macroeconomic volatility, and potential technological hurdles could pose challenges. But if current momentum continues, Bitcoin may no longer be considered just a speculative asset — it could become the centerpiece of global financial strategy.
In related news, the rise of institutional-grade yield-generating strategies for Bitcoin is reshaping the digital asset's financial utility and unlocking a new wave of decentralized finance (DeFi) adoption. The demand for ways to earn yield on Bitcoin—without having to sell it—has grown exponentially, signaling a fundamental shift in how corporations view and use BTC.
Historically, generating yield on Bitcoin was nearly impossible due to its lack of a native staking mechanism. However, innovations in layer-1 and layer-2 technologies, such as Babylon, are now enabling Bitcoin holders to stake their assets to provide security and liquidity to PoS networks, thereby earning returns in a permissionless and decentralized manner. Babylon, a key integration with Solv, allows BTC to act as collateral within PoS ecosystems, helping transform dormant assets into productive capital. This structure is increasingly appealing to institutions that hold BTC on their balance sheets but want to avoid liquidating positions for short-term liquidity needs.
The most common financial use case for institutional BTC holders is lending. Once firms acquire Bitcoin, they often opt to lend it out instead of selling — a practice that preserves their position while generating passive income. Major platforms now offer borrowing limits of up to $1 million against Bitcoin collateral, while protocols provide near-instant liquidity options on-chain. This development not only improves Bitcoin’s capital efficiency but also introduces the kind of financial tooling institutional investors expect.
An April 2025 report revealed that the total Bitcoin held by publicly listed companies surged 16.1% in Q1, reaching 688,000 BTC by the end of the quarter. This marked an increase of 95,431 BTC, valued at roughly $56.7 billion with Bitcoin priced at $82,445. This trend supports the notion that Bitcoin is moving beyond speculative appeal and becoming a core component of treasury strategies among a growing number of corporations.
Looking ahead, over 100,000 BTC is expected to enter non-native ecosystems like Solana, expanding Bitcoin’s reach across the DeFi spectrum. Solv recently launched SolvBTC.core, a Sharia-compliant Bitcoin yield product that earns yield by securing the Core blockchain and participating in on-chain DeFi—all while aligning with Islamic finance principles. This move opens the door to broader participation from Muslim-majority regions, where compliance with Islamic law is a prerequisite for financial product adoption.
Solv Protocol already boasts over 25,000 BTC locked into its infrastructure — an amount valued at more than $2 billion — reflecting strong demand for compliant and yield-generating Bitcoin products. As institutional interest in Bitcoin yield strategies continues to grow, Solv is focused on building bespoke infrastructure tailored to institutional-grade requirements, including legal compliance, cultural sensitivity, and long-term capital retention. By enabling BTC to operate within structured DeFi frameworks, projects like Solv Protocol are helping Bitcoin transition from a speculative asset to a cornerstone of decentralized global finance.
