Cryptocurrencies have long been viewed with skepticism. They were called a bubble, a tool for fraudsters and a temporary phenomenon. However, today we observe a paradoxical situation: the largest banks, investment funds and government agencies not only do not reject digital assets, but also actively invest in them. Why is this happening? Let’s break it down.
Key players investing in cryptocurrency
1- Banks
JPMorgan, which once called bitcoin a “scam,” now offers cryptocurrency investments to its clients and has launched its own blockchain system.
Goldman Sachs is expanding crypto asset trading and investing in blockchain infrastructure.
Citibank is exploring the possibility of launching a digital asset for international settlements.
- institutional investors and funds
BlackRock, the world’s largest asset manager, launched a spot bitcoin-ETF, confirming strong demand for cryptocurrency instruments.
Fidelity offers cryptocurrency custody and trading services to its clients.
ARK Invest is actively increasing its investments in bitcoin and blockchain-related companies.
- Government institutions
Central banks in many countries, including China and Europe, are developing digital currencies (CBDCs) using blockchain technology.
The SEC (US Securities and Exchange Commission) is gradually adapting regulation, creating a legal framework for institutional investment in crypto assets.
Why are the big players going into crypto?
1- Inflation and capital protection
Traditional assets such as fiat currencies and bonds are prone to inflation. Cryptocurrencies, especially limited-issue bitcoin, are perceived as a means of preserving value. In a high inflation environment, hedge funds and institutional investors view crypto-assets as “digital gold”.
- The rise in popularity of blockchain
Blockchain is not only about cryptocurrencies, but also a powerful technology for decentralized finance (DeFi), smart contracts and the transformation of entire industries. Banks are investing in this area to keep up with competitors and control new financial flows.
- Profitability and new financial instruments
The crypto market remains one of the most profitable in the last 10 years.
The emergence of ETFs, futures, DeFi protocols and staking opens up new opportunities to make money.
Big money goes where there is high yield, and crypto remains a high-yielding asset for now.
- State-level adoption
Despite attempts at bans and regulation, governments are adapting to the crypto economy. In 2024, the US approved several spot bitcoin-ETFs, sending a strong signal to institutional investors. Stablecoins are being regulated in Europe, and crypto-financial hubs are being established in Asia.
If crypto is a scam, why are billions going into it?
The logic is simple: if cryptocurrencies were pure fraud, the biggest banks and funds wouldn’t be investing in them and governments wouldn’t be adapting legislation. The cryptocurrency market has already passed the “wild west” stage and is moving towards maturity. The question is not whether cryptocurrency will exist, but what role it will take in the future of the financial system.
Skepticism around crypto still exists, but the facts speak for themselves. Global players are not just observing the market – they are actively participating in it. Therefore, the question should not be “is crypto a scam?” but “what strategy should I choose so that I don’t miss opportunities?”