In 2024, Bitcoin reached mainstream status with 11 ETFs approved, attracting $113.5 billion and driving its price to $100,000. Institutional adoption surged, led by MicroStrategy’s Bitcoin holdings and a 220% rise in Kraken’s OTC transactions. Despite concerns about decentralisation, Bitcoin’s core principles remain intact, as the market saw expanded services, regulatory developments, and broader institutional integration
The surge in demand was primarily attributed to professional investors, solidifying Bitcoin’s position as a preferred financial instrument for large-scale portfolios.
Institutional growth and OTC market expansion
The institutional adoption of Bitcoin resonated across various markets, notably influencing over-the-counter (OTC) transactions. Kraken, a prominent cryptocurrency exchange, reported a 220% year-over-year increase in its OTC markets. Tim Ogilvie, head of institutional at Kraken, remarked on the trend, stating, “Long story short, OTC is going gangbusters right now.”
This surge highlights the growing involvement of institutional players in the cryptocurrency market, further reinforcing its stability and potential as a store of value.
Public companies embrace bitcoin
Beyond ETFs, publicly traded companies continued to integrate Bitcoin into their balance sheets. MicroStrategy, a trailblazer in corporate Bitcoin adoption since 2020, remains at the forefront. By the close of 2024, the company had amassed over 444,000 Bitcoin in its treasury.
On 23 December 2024, MicroStrategy submitted a proxy to the United States Securities and Exchange Commission, seeking shareholder approval to extend its Bitcoin purchasing strategy through 2025. This move underscores the increasing alignment of corporate strategies with the long-term potential of Bitcoin.
Despite concerns that institutionalisation may divert Bitcoin from its decentralised origins, the cryptocurrency remains fundamentally aligned with its founding principles. Operating independently of central authorities, Bitcoin continues to offer individuals worldwide the ability to store and transfer wealth securely.
Crypto market developments
2024 also witnessed other notable developments in the cryptocurrency space. Crypto.com launched a new custody service, providing enhanced security for institutional and retail investors. Meanwhile, regulatory dynamics evolved, with Russia imposing a partial ban on crypto mining and the United States introducing taxes on staking rewards.
Bitcoin’s evolution throughout 2024 signals the growing acceptance of cryptocurrency as a legitimate asset class. From ETFs to corporate treasury strategies, the cryptocurrency’s mainstream integration is reshaping global financial systems.
