Bitcoin’s Tipping Point: How Institutions, Governments, and Whales Are Fueling the Next Wave of Adoption

Happy Monday Bitcoiners, it's Bam here with another Bitcoin update!

Each week, our team at Bitcoin News saves you time by curating the most impactful events into a concise, easy-to-read update.

Notable events this week include:

• Bitcoin miners face increased scrutiny from U.S. Customs.

• Fold & Visa launch a credit card offering up to 2% back in Bitcoin rewards.

• With SAB 121 repealed, banks begin to roll out Bitcoin custody services.

Let’s dive in! ⚡

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LATEST NEWS 📰

🙌 ADOPTION

• New whales have rapidly increased their Bitcoin holdings over the past six months, while old whales have held steady.

• Fold teams up with Visa to launch a new credit card offering up to 2% back in Bitcoin on every transaction.

• State Street and Citi are launching Bitcoin banking services following the repeal of SAB 121.

⚖️ LEGAL

• Japanese Financial Services Agency is considering lifting the ban on Bitcoin ETFs, following proposed tax cuts reducing crypto gains tax from 55% to 20%.

• Wyoming Highway Patrol Association adopts Proof of Workforce’s “Get Off Zero” initiative, potentially making it the first U.S. law enforcement association to hold Bitcoin on its balance sheet.

• Eric Council Jr., 25, from Alabama, pleaded guilty to hacking the SEC’s X account and falsely announcing the approval of spot Bitcoin ETFs. He faces up to five years in prison.

📈 MARKETS

• Strategy acquires 7,633 BTC, bringing its total to 478,740 BTC. KULR adds 100 BTC, now holding 610 BTC. Metaplanet’s 2024 financials reveal a 1,720% asset increase and ¥5.457 billion in unrealized Bitcoin gains.

• Paul Tuder Jones makes Bitcoin the largest position in his portfolio.

• The latest 13F filings reveal major Bitcoin ETF holdings: Millennium Management ($2.6B), Goldman Sachs ($1.558B), Brevan Howard ($1.3B), and the UAE Sovereign Fund ($436M).

⛏️ MINING

• US Bitcoin miners face delays in receiving new equipment from Chinese supplier Bitmain as Customs and Border Protection increases scrutiny amid tariffs imposed by the Commerce Department.

• Bitcoin miner Digihost is converting its Alabama mine into an AI and high-performance computing data center, citing regulatory hurdles in New York.

• MARA CEO describes to Fox News how his company was debanked under Operation Chokepoint 2.0.

🗳️ POLITICS

• Abu Dhabi's Sovereign Wealth Fund buys $436 million worth of Bitcoin ETFs in Q1.

• Argentina’s President Javier Milei is caught in controversy over a failed meme coin launch, where insiders extracted $100 million.

• Senator Cynthia Lummis on Abu Dhabi’s bitcoin acquisition: “I told you the race was on. It's time for America to win.“

BAMS 2 SATS 🧢

This week perfectly embodies the famous quote: “There are decades where nothing happens, and there are weeks where decades happen.” The race for strategic Bitcoin adoption is accelerating at an unprecedented pace, with 30 U.S. states now proposing Bitcoin Reserve legislation. But this isn’t just a U.S. phenomenon, it’s a global movement.

Newly released 13F filings reveal that institutions are ramping up their exposure to spot Bitcoin ETFs. Notably, Abu Dhabi’s $1.7T Sovereign Wealth Fund disclosed a $436 million stake in Bitcoin ETFs. While this represents just 0.02% of its holdings, it marks a cautious yet significant first step into the Bitcoin ecosystem.

To see institutional and nation-state adoption in data form, we can look at Ki Young Ju’s research on new versus old Bitcoin whales.

His data shows that new Bitcoin whales (institutions and large investors) are accumulating Bitcoin at an accelerating pace, while older whales (long-term holders) are maintaining their positions rather than adding more.

Beyond institutional adoption, major banks are now stepping into the Bitcoin space. State Streetand Citi Bank recently announced plans to launch Bitcoin banking services, a move made possible by the repeal of SAB 121. This regulatory shift removes barriers for banks to act as custodians for Bitcoin, paving the way for broader institutional participation.

For context, Michael Saylor identified three key prerequisites for a major Bitcoin adoption wave and a path to $5 million per Bitcoin:

1. Spot Bitcoin ETFs: Providing traditional investors with easier access.

2. FASB standards: Standardizing Bitcoin’s accounting treatment, making it more palatable for corporations and institutions.

3. Banks as custodians: With SAB 121 repealed, banks can now securely hold Bitcoin for their clients.

You no longer have to squint to see the tidal wave of Bitcoin adoption approaching. With only 21 million Bitcoin in existence, the competition for a piece of this finite asset is intensifying. Whether you’re an individual investor, an institution, or a nation-state, the time to pay attention is now.

Stay safe and keep on stacking!
Bam

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