Written by Craig Lebrau.
In 2024, the cryptocurrency market saw a significant increase in institutional interest, partly fueled by the approval of the first spot Bitcoin ETFs in the US in January. And it seems large-scale investors haven’t lost their appetite for crypto this year.
Record-Breaking Deals, Massive ETF Inflows, and an RWA Tokenization Boom
On March 12, 2025, leading crypto exchange Binance secured a record-breaking $2 billion investment from the Abu Dhabi-based technology-focused institutional firm MGX. The deal, nearly double the total funding raised by 137 digital asset startups in February, is the single largest placement in a crypto firm to date. While it marks MGX’s entry into the cryptocurrency market, it is also Binance’s first institutional raise and the most substantial investment made in crypto assets or stablecoins.
According to Binance CEO Richard Teng, the landmark investment marks a significant milestone for both his company and the crypto industry, supporting Binance’s and MGX’s joint efforts to shape the future of digital finance. As he put it, “Our goal is to build a more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection.”
“Binance remains committed to working with regulators worldwide to establish transparent, responsible, and forward-thinking policies for the crypto industry. Our ongoing investments in security and compliance reinforce our mission to foster a secure and trusted digital financial ecosystem,” Teng added.
Ahmed Yahia, MGX’s Managing Director and CEO, argues that the massive investment in Binance reflects his company’s “commitment to advancing blockchain’s transformative potential for digital finance.” He also shared insights into crypto’s adoption by large-scale investors: “As institutional adoption accelerates, the need for secure, compliant, and scalable blockchain infrastructure and solutions has never been greater.”
As of March 14, 2025, institutions, corporations, and governments are holding 3.09 million BTC, roughly 15% of the total Bitcoin supply. This figure has significantly increased over the past few months, reaching an all-time high at the end of February as publicly traded companies like MicroStrategy, MARA Holdings, Riot Platforms, and Tesla have demonstrated growing interest in Bitcoin. Simultaneously, BTC ETFs and trusts have recorded nearly $110 billion in inflows, another strong signal of renewed institutional demand.
With analysts at Pantera Capital and Standard Chartered predicting Bitcoin could reach $740,000 and $500,000 by 2028, respectively, institutional involvement in crypto appears to be on an upward trajectory. A joint report by PwC and AIMA in October 2024 revealed that 47% of traditional hedge funds now hold digital assets, up from 29% in 2023, reinforcing the trend that institutional crypto investment continues to gain traction. Meanwhile, institutional investors are anticipating the approval of a new wave of US ETFs tracking crypto indices and tokens like XRP and SOL, as firms such as VanEck, 21Shares, and Canary Capital have submitted 16 applications to the SEC.
Moreover, real-world asset (RWA) tokenization, which bridges traditional finance and decentralized finance by bringing conventional market instruments on-chain, is also gaining momentum. According to RWA.xyz’s data, a total of $18.34 billion has been tokenized on the blockchain. This figure, which has surged 19.22% year-to-date, signals substantial institutional interest in RWAs and their applications in the $90 billion decentralized finance sector.
Playing an Integral Role in Global Finance
As institutional demand grows, crypto is transitioning from a speculative asset to a fundamental component of financial portfolios. A key factor driving the adoption of cryptocurrency by large-scale investors is a shift in their perception of digital assets. Rather than viewing crypto as a niche investment, they now see it as a store of value, a diversification tool, and a hedge against inflation.
These views are reinforced by Bitcoin’s maximum supply cap of 21 million and its deflationary halving mechanism, which reduces its new supply by 50% approximately every four years. Amid economic uncertainty and inflationary pressures, BTC and altcoins provide an attractive alternative to fiat currencies and traditional financial instruments like stocks and bonds. Considering that Bitcoin has delivered nearly 1,500% returns since March 2020, its high growth rate makes it a viable option for preserving capital and achieving higher returns per unit of risk.
Looking ahead, institutional crypto demand is expected to accelerate as regulatory clarity improves, financial markets adapt to digital asset adoption, and more investment vehicles, such as ETFs and tokenized real-world assets, become available. While volatility remains an inherent challenge, institutional capital inflows and blockchain innovation continue to reinforce crypto’s position as a legitimate alternative asset class.
With Bitcoin’s scarcity, improving institutional perception, and increasing RWA tokenization efforts, digital assets are poised to play an even larger role in global finance. As institutional investors refine their strategies and expand their exposure to cryptocurrencies, the boundaries between traditional and digital finance will continue to blur, shaping the future of investment and asset management.
