Institutional Transformation of Bitcoin: How TradFi Rewrites Portfolio Strategy Rules

Driven by continued inflation and low returns on traditional assets, traditional financial institutions will increasingly allocate their portfolios to Bitcoin by 2025. Bitcoin’s supply cap and liquidity appeal make it a hedge tool, thanks to regulated ETFs such as BlackRock’s iShares Bitcoin Trust, which have assets of over $63 billion. The new derivatives platform implements complex risk management, while institutional investors adopt a 1-5% phased configuration strategy, similar to the historical application of gold. Despite regulatory uncertainty and volatility, Bitcoin’s annualized rate of return (2020-2025) and macroeconomic trends consolidate its position as a strategic institutional asset.