Bitcoin’s Resurgence: Analyzing the 2025 Rally and Institutional Adoption

Well, as expected, Bitcoin rallied double digits in 2025.

The crypto major dropped below 100,000 earlier this year amid tariff uncertainty and recession fears, but it reclaimed that level in early May and hasn't fallen below it for over a month and we're just over half an hour away from House committee markups on the Digital Asset Market Clarity Act of 2025.

The bill aims to define clear legal categories for digital assets and assign oversight to specific federal agencies ending the current.

Patchwork approach pending crypto legislation on Capitol Hill could be a price catalyst as clearer rules may boost institutional adoption.

Well joining me this morning at the New York Stock Exchange is Federico Broque, head of US business at 21 shares.

So Federico, great to have you back.

Thank you for joining me.

Thanks for having me.

Great to be here from the stock exchange.

Well, first and foremost, yesterday we saw Bitcoin clear 110 and ETA back above 2700 as well.

So as we head into the rest of June and of course the second half of this year.

What are some catalysts you're watching and why?

Absolutely.

So last time I was on the show, I think it was the end of April, and Bitcoin was somewhere in the 95,000 range, and we were highlighting how it was growing up right before our very eyes.

I think since then we've definitely seen a continuation of that trend, and we've seen a lot of new clients coming into the Bitcoin universe, which is encouraging from a student of digital asset markets.

You know, I think one thing we highlighted last time that's also persisted in this decoupling from risks asset.

And so if you think about the last 6 months, as you mentioned earlier, Bitcoin is up double digits while S&P 500 is flat basically during that same time period.

And so that's bringing a lot of new investors into the fold and definitely bring more attention to the space.

Yeah, and Federico, quite a change from when you were last year at the end of April, but we also have to take a step back and look at the macro environment.

But as you mentioned in terms of investment sentiment, what are we seeing when it comes to institutional adoption?

Yeah, no, it's a great, great question. and you know, I think we usually use ETF flows as a good bellwether for adoption.

Bitcoin ETFs this year have captured over 9 billion in net new assets, 3.5 billion coming just over the last 4 weeks alone.

And certainly there's some retail participation there, but we think this last leg up has actually been driven a lot by institutional investors, whether they're ETF buyers or advisors finally allocating on behalf of their clients.

Another good segment of the market to look at is actually corporate treasuries, and a lot of public and private companies are beginning.

To buy Bitcoin on their balance sheet and they're coming in by the billions, whether it's the US's micro strategy, Japan's Metaplat or France's blockchain group, just to name a couple.

There's billions and billions of dollars coming from public and private companies entering Bitcoin for the very first time, and the market is certainly rewarding these companies that are doing so so far.

And I'm glad you mentioned that because I understand you went to the Bitcoin 2025 conference in Vegas and that was a key topic of discussion there, and I understand.

When it comes to Bitcoin on the balance sheet, you see that as a levered place.

So for viewers out there who might be retail investors and wondering what this does to the supply, can you break it down for us?

Yeah, these are long term buyers of Bitcoin, right?

And so at the end of the day, the more companies we have using Bitcoin on their balance sheet, these are net new buyers that are coming into the market and essentially bringing up all the liquidity that they can.

So when you're thinking about, you know, the 150 or so companies that we've tracked that 21 shares that currently.

We buy Bitcoin.

These are accounting for around $120 billion worth of Bitcoin, and that trend is only continuing to grow right? and we certainly saw it at the conference in Vegas.

Yeah.

And what percentage of this is the Bitcoin supply right now?

This is a tremendous amount of the Bitcoin supply and actually one thing we typically look at is how much Bitcoin is currently listed on exchange, and that's reaching all-time lows at this current moment.

And so right now the demand is far outceeding any terms of supply.

And we're very, very bullish on the outlook for Bitcoin given that.

And Federico, before I let you go, all eyes are on the nation's capital today.

We heard from Paul Atkins yesterday and today we will await the hearing that's happening in terms of the House Financial Services Committee.

So in terms of regulatory clarity, what are your expectations?

Well, we're really excited about what's happening with the Genius Act in Washington DC, and for those who may not know, the Genius Act looks to regulate stablecoins in the.

States for us this is one of the landmark bills that we could see passing this year or this week, actually maybe next week even and so one thing that we're closely looking at is as this regulation brings more clarity for institutional investors or institutional players like the Visas, the PayPals, the Mastercards of the world that currently manage billions of dollars' worth of transactions, the more comfortable they are with US dollar-based transaction.

Its on blockchain, the more comfortable other investors will be as well.

So we're very, very excited about what could happen this week.

And of course since you're here we have about 60 seconds, but Circle went public here at the New York Stock Exchange last week on the topic of stablecoins.

So what's your reaction to that?

I mean, stablecoins are one of the killer use cases for crypto today, right?

Bitcoin and then stablecoins, and Circle is certainly one of the leaders in the industry, and we're seeing the market.

Reward companies that are participating and are doing the things like Circle is doing today, and we certainly saw that with the stock price that Circle went live at.

So we're really excited about Tony Munches, and that means more and more people are bringing attention to crypto assets and it's good for the entire ecosystem.

Well Federico, thank you so much for joining me.

As you can hear behind us, the market is about to open for the equity market, so we will have to wrap it there.

But thank you so much for joining us.

Thanks for having me, Rey.

My pleasure.