TLDR
- Over half of institutional investors plan to double their Bitcoin investments by 2028.
- State Street reports a shift from experimentation to full-scale integration of digital assets.
- Institutions are beginning to tokenize private equity and fixed income assets using blockchain.
- By 2030, many firms expect up to 24 percent of their portfolios to be tokenized.
- Transparency, efficiency, and reduced costs are driving the adoption of blockchain among asset managers.
Institutional investors are significantly increasing their exposure to Bitcoin, a new report from State Street confirms. Over half of them intend to double their crypto holdings within three years. The shift marks a new phase in blockchain adoption and Bitcoin’s integration into traditional investment strategies.
Institutions Pivot Toward Blockchain Integration
According to State Street’s 2025 Digital Assets Outlook, institutional focus is shifting from testing to full integration of Bitcoin. This transition marks a broader adoption of blockchain infrastructure across asset management practices. Firms are no longer experimenting; they are embedding crypto into their core strategies.
Many institutions are turning to blockchain to tokenize assets, such as private equity and fixed income. This process enhances trading efficiency and allows fractional ownership of previously illiquid assets. As a result, the market sees increased liquidity and real-time updates.
The report shows that by 2030, 10% to 24% of institutional portfolios could be tokenized. Transparency and efficiency drive this shift. Over 50% of respondents said asset data visibility was a significant advantage.
Strategic Investments Backed by Dedicated Teams
Donna Milrod, Chief Product Officer at State Street, emphasized that digital assets now play a significant role in strategic planning. “More clients are redesigning operations around digital assets,” she said. Nearly 20% more institutions also plan to build dedicated teams.
Currently, 40% of institutions have teams focused on digital assets such as Bitcoin and blockchain projects. These teams support innovations including tokenized stocks, bonds, and stablecoins. The scope also includes on-chain wrappers, CBDCs, and tokenized cash.
This growing expertise accelerates the operational readiness of firms to scale crypto investments. It reflects a deeper confidence in the long-term role of Bitcoin in capital markets. Institutions are investing not only in assets but in supporting infrastructure.
Bitcoin Exposure Grows Through ETFs and Corporate Holdings
Bitcoin exposure among institutions is already notable, with ETFs holding $188 billion. Public companies account for $118 billion in Bitcoin, while private firms have $51 billion. This presence is expanding as firms prepare to double investments by 2028.
Digital asset markets are no longer driven by retail investors, but are increasingly shaped by institutional strategies. These include broader portfolio allocations and innovative investment products. State Street identifies this trend as a strategic transformation, not a tech experiment.
Additionally, institutions view emerging technologies, such as generative AI and quantum computing, as key to optimizing cryptocurrency operations. These technologies could enhance automation, decision-making, and data processing. As Bitcoin adoption rises, supporting tech will likely follow.
