① Bitcoin hit a new all-time high this week. Analysts believe the current rally is still dominated by retail investors, with institutional investors' role just "starting to take root".  
② According to estimates from research firm Vanda Research, there is a correlation between the surge in retail purchases of crypto ETFs and crypto-related stocks and the price increase.  

As Bitcoin hit an all-time high this week, attention has turned to the role institutional investors are playing in this surge. Some analysts state that the current rally is still driven by retail investors, while institutional involvement is just "beginning to emerge".  

Earlier this week, boosted by expectations of crypto-friendly policies in Washington, the world's largest cryptocurrency soared above $120,000 to set a new record. However, analysts say that while discussion around digital assets has increased, institutional demand has room to grow as pension funds and other long-term buyers incorporate Bitcoin into their portfolios.  

On Thursday, a closely watched U.S. stablecoin bill easily passed the House of Representatives, with U.S. President Trump expected to sign it on Friday. Simultaneously, the House also passed a bill (the CLARITY Act) establishing a regulatory framework for cryptocurrencies, which will now go to the Senate for consideration. A core provision of this bill aims to reduce the U.S. SEC's regulatory authority over cryptocurrencies, transferring more control to the Commodity Futures Trading Commission (CFTC).  

Furthermore, some major U.S. banks, including Bank of America (Bank of America Corporation(BAC.US)) and Citigroup (Citigroup Inc.(C.US)), are actively working to launch stablecoins.  

"On the institutional holdings side, we are still in the very early stages. Retail investors still dominate the crypto market," said Adrian Fritz, Research Lead at digital asset investment firm 21Shares.  

Fritz estimates that less than 5% of all spot Bitcoin ETF (Exchange-Traded Fund) assets are held by long-term investors like pension funds and endowments, with another 10% to 15% held by hedge funds or wealth managers.  

However, he noted that hedge funds or wealth managers often purchase these funds on behalf of high-net-worth retail clients, and the majority of ETF holdings remain retail.  

According to estimates from research firm Vanda Research, there is a correlation between the surge in retail purchases of crypto ETFs and crypto-related stocks and the price increases. Data shows that following Trump's U.S. election win late in 2024 (where he vowed to be the "crypto president"), cryptocurrency prices surged as retail buyers piled in, mirroring the pattern seen in the recent rally.  

Simon Forster, Co-Head of Digital Assets at trading platform operator and data provider TP ICAP, predicts the number of institutions active in crypto will grow by 2026, including pensions and other buy-and-hold firms.  

"According to analysis, they will be the slowest to enter [the crypto space]," said Fritz.  

On the other hand, publicly listed companies like Strategy and GameStop are playing an increasingly significant boosting role. Originally focused on software and video game retail respectively, they now emphasize holding Bitcoin positions on their balance sheets and generating profits through them, instead of holding cash, gold, or U.S. Treasuries.  

Juan Leon, Research Analyst at asset manager Bitwise Asset Management, stated that these companies buying Bitcoin indicates they are a larger source of recent Bitcoin demand, whereas pensions, endowments, and hedge funds are major players in the stock and bond markets.  

Simon Peters, Crypto Analyst at investment platform eToro, said that since last July, global listed companies' Bitcoin holdings have increased by 120%. They now hold over 859,000 bitcoins, accounting for more than 4% of the planned total supply of 21 million bitcoins.