Bitcoin is entering a new phase of financial maturity as institutional interest accelerates and novel yield-generating strategies emerge. At the Token2049 conference in Dubai, executives from Bitwise and Solv Protocol highlighted how developments such as staking integrations, lending markets, and record-setting ETF inflows are driving Bitcoin’s evolution from a passive asset to a dynamic financial instrument. With forecasts placing Bitcoin’s future price at over $1 million by 2029, the digital asset’s role in global finance appears to be expanding far beyond its original use case. Bitcoin’s $1 Million Dream: Bitwise Predicts BTC Will Overtake Gold by 2029 on Institutional Momentum Bitcoin may be on a path to unseat gold as the world’s dominant store of value, with Bitwise Asset Management forecasting that the world’s largest cryptocurrency could reach $1 million per coin by 2029. This prediction, shared by André Dragosch, Bitwise’s Head of European Research, hinges on accelerating institutional adoption and what he calls “structural inflows” from financial products like exchange-traded funds (ETFs). “Our in-house prediction is $1 million by 2029. So that Bitcoin will match gold's market cap and total addressable market by 2029,” Dragosch said in an April 30 appearance on the Chain Reaction daily X Spaces show . Bridging the Gap Between Bitcoin and Gold Gold currently reigns as the world’s largest asset class, with a market capitalization of over $21.7 trillion, according to CompaniesMarketCap. By comparison, Bitcoin’s market cap is a modest $1.9 trillion, placing it as the seventh-largest asset globally. Top 10 global assets by market capitalization (Source: CompaniesMarketCap ) Despite this gap, Dragosch and others believe Bitcoin has the potential to close in on gold — not just in valuation, but in perceived utility as a reliable store of value. As institutions pour in and new financial infrastructure builds around the asset, the narrative of Bitcoin as ”digital gold” is gaining traction. For the current market cycle, Dragosch estimates that Bitcoin may surpass $200,000 under “base case” conditions. However, that price target could more than double if the US government adopts Bitcoin as part of its strategic reserves. “If [the government] steps in, it will move closer toward $500,000,” Dragosch added, referring to reports that US officials are exploring “budget-neutral” methods for accumulating Bitcoin without liquidating existing gold reserves. Bo Hines, a member of the US Presidential Council of Advisers for Digital Assets, recently told media outlets that the government is considering funding Bitcoin acquisitions through tariff revenue and reevaluated gold certificates, effectively creating a “paper surplus” to back BTC purchases. This potential policy pivot could mark the beginning of sovereign adoption, a transformative shift that Dragosch believes would upend current projections and “change everything.” ETFs as Structural Catalysts One of the most significant tailwinds for Bitcoin’s growth has been the explosive debut of US-based spot Bitcoin ETFs in early 2024. Dragosch pointed to the success of BlackRock’s iShares Bitcoin Trust ETF, which has become the fastest-growing ETF in history. These structural inflows, driven by mainstream investment vehicles, could extend the duration and intensity of the current Bitcoin cycle — breaking away from the traditional four-year halving-based rhythm that has defined prior bull markets. Another major factor in Bitcoin’s future trajectory is the adoption by US wirehouses — financial firms like Merrill Lynch and Morgan Stanley, which collectively manage over $10 trillion in client assets. “Not even half of these wirehouses have opened up their distribution channels to US Bitcoin ETFs,” Dragosch noted. “Once they do, it’s going to be a huge wave of capital that enters the market.” Wirehouses serve as a crucial gateway for high-net-worth individuals and institutional clients, meaning that any shift toward Bitcoin exposure in these firms could represent a massive reallocation of capital toward digital assets. From Hype to Hyperbitcoinization? While $1 million Bitcoin by 2029 might sound bold, Dragosch’s forecast echoes broader trends in hyperbitcoinization theory, which suggests that Bitcoin could become a dominant monetary base layer globally. Earlier this year, Blockstream CEO Adam Back made a similar point, highlighting how Bitcoin treasury accumulation by firms and governments could lead to a $200 trillion realignment of global financial infrastructure. However, even proponents admit the road to $1 million won't be linear. Regulatory risks, macroeconomic volatility, and potential technological hurdles could pose challenges. But if current momentum continues, Bitcoin may no longer be considered just a speculative asset — it could become the centerpiece of global financial strategy. Bitcoin Yield Revolution Gains Momentum as Institutions Embrace DeFi Strategies In related news, the rise of institutional-grade yield-generating strategies for Bitcoin is reshaping the digital asset's financial utility and unlocking a new wave of decentralized finance (DeFi) adoption. According to Ryan Chow, co-founder and CEO of Solv Protocol, the demand for ways to earn yield on Bitcoin—without having to sell it—has grown exponentially, signaling a fundamental shift in how corporations view and use BTC. Speaking during a fireside chat at the Token2049 conference in Dubai on May 1, Chow highlighted how this evolving landscape is helping transform Bitcoin from a passive store of value into a dynamic financial instrument. “Bitcoin as the largest asset class here, you can stake your Bitcoin to secure the network that makes us feel like if it is the answer to really bring utility and also use case,” Chow said. From Inert Asset to Yield Engine Historically, generating yield on Bitcoin was nearly impossible due to its lack of a native staking mechanism. Unlike Ethereum, which transitioned to a proof-of-stake (PoS) consensus model, Bitcoin’s proof-of-work (PoW) structure offered no built-in yield generation features. However, innovations in layer-1 and layer-2 technologies, such as Babylon, are now enabling Bitcoin holders to stake their assets to provide security and liquidity to PoS networks, thereby earning returns in a permissionless and decentralized manner. Babylon, a key integration with Solv, allows BTC to act as collateral within PoS ecosystems, helping transform dormant assets into productive capital. This structure is increasingly appealing to institutions that hold BTC on their balance sheets but want to avoid liquidating positions for short-term liquidity needs. The most common financial use case for institutional BTC holders is lending. Chow explained that once firms acquire Bitcoin, they often opt to lend it out instead of selling — a practice that preserves their position while generating passive income. Major platforms like Coinbase now offer borrowing limits of up to $1 million against Bitcoin collateral, while protocols such as Aave and Compound provide near-instant liquidity options on-chain. This development not only improves Bitcoin’s capital efficiency but also introduces the kind of financial tooling institutional investors expect. Chow also pointed to companies like Strategy (formerly MicroStrategy) as leaders in the space, using Bitcoin to issue derivatives and debt products, further legitimizing BTC as a strategic treasury asset. Public Firms Accelerate BTC Holdings An April 2025 report from crypto asset manager Bitwise revealed that the total Bitcoin held by publicly listed companies surged 16.1% in Q1, reaching 688,000 BTC by the end of the quarter. This marked an increase of 95,431 BTC, valued at roughly $56.7 billion with Bitcoin priced at $82,445. This trend supports the notion that Bitcoin is moving beyond speculative appeal and becoming a core component of treasury strategies among a growing number of corporations. “MSTR is a very successful derivatives kind of use case based on Bitcoin […] That’s also Bitcoin finance,” Chow noted, referring to MicroStrategy’s strategic use of debt instruments to accumulate Bitcoin. Looking ahead, Chow expects to see over 100,000 BTC enter non-native ecosystems like Solana, expanding Bitcoin’s reach across the DeFi spectrum. To that end, Solv recently launched SolvBTC.core, a Sharia-compliant Bitcoin yield product that earns yield by securing the Core blockchain and participating in on-chain DeFi—all while aligning with Islamic finance principles. Chow emphasized that regulatory and cultural considerations are key for scaling institutional offerings globally. “Sharia compliance is something that we prepared for a long time [...] you have to pass it before you really serve them through your platform.” This move opens the door to broader participation from Muslim-majority regions, where compliance with Islamic law is a prerequisite for financial product adoption. Solv Protocol already boasts over 25,000 BTC locked into its infrastructure — an amount valued at more than $2 billion — reflecting strong demand for compliant and yield-generating Bitcoin products. Building Infrastructure for the Next Financial Epoch As institutional interest in Bitcoin yield strategies continues to grow, Chow confirmed that Solv is focused on building bespoke infrastructure tailored to institutional-grade requirements, including legal compliance, cultural sensitivity, and long-term capital retention. By enabling BTC to operate within structured DeFi frameworks, projects like Solv Protocol are helping Bitcoin transition from a speculative asset to a cornerstone of decentralized global finance.
