Capital markets Feature News Opinion

Institutional adoption of digital asset yield strategies in a new era of regulatory clarity

bitcoin digital-assets

Bitcoin is increasingly being included in the portfolios of institutions and their clients. In this opinion piece, Jason Leibowitz, explores how the digital asset space can be tailored for institutions. He is Head of Private Wealth at Hashnote, a digital asset manager started by the founders of DRW.

For years, Bitcoin lingered at the fringes of institutional finance, viewed as an experimental asset marred by volatility and regulatory uncertainty. Despite its promise of decentralization and outsized returns, Bitcoin remained largely untouchable for banks, asset managers, and other stalwarts of traditional finance (TradFi). However, a tectonic shift is underway. As regulatory clarity emerges in the United States and institutional interest grows, Bitcoin is poised to redefine portfolio strategies. Yet, one critical question persists: How can Bitcoin move beyond speculative asset status and deliver real, risk-adjusted value to institutional portfolios?

This question lies at the heart of an innovation wave that is reshaping the digital asset landscape. Yield-generating Bitcoin strategies, long a focus of crypto-native platforms, are now being tailored for institutions. At Hashnote, an on-chain digital asset manager, we have seen firsthand the challenges and triumphs of building these strategies. The journey to institutional adoption is not without its hurdles, but the rewards—for both investors and the broader ecosystem—are transformative.

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