Institutional adoption of bitcoin is entering a new phase focused on financing, holding, and utilizing the asset rather than simply deciding whether to own it, according to a research note from TD Cowen.
In a Sept. 29 sector note titled “Three Themes Shaping the Next Phase of Institutional Bitcoin Adoption,” TD Securities equity analyst Lance Vitanza examined discussions from the Sept. 28 Bitcoin Treasuries Conference in New York. Vitanza noted that market participants are increasingly concentrating on capital markets, implementation frameworks, and institutional infrastructure built around bitcoin.
Conference discussions highlighted the development of bitcoin-backed bonds, preferred shares, convertible securities, and corporate treasury financing. Active examples include Strategy Inc., which disclosed on Sept. 28 that it purchased additional bitcoin and repurchased preferred stock. Such financing structures offer investors exposure through corporate balance sheets with terms distinct from direct cryptocurrency ownership.
Practical considerations regarding how institutions hold bitcoin were also a major focus. Blackrock representatives at the conference described exchange-traded funds (ETFs) and self-custody as complementary approaches that serve different types of investors. Additionally, the Securities and Exchange Commission permitted in-kind creation and redemption for crypto exchange-traded products in July 2025, enabling authorized participants to exchange eligible crypto assets directly for fund shares rather than relying solely on cash transactions.
Other topics addressed at the conference included estate planning, advisory allocation frameworks, and corporate operating procedures for bitcoin treasuries. Strategy Executive Chairman Michael Saylor also proposed rules that would allow banks to custody bitcoin and lend against it.
Security and privacy emerged as prominent institutional concerns. Because all bitcoin transactions appear on a public ledger, specialist firms can monitor large institutional transfers to infer trading intentions or capital deployment. Panelists also discussed long-term planning for potential threats from quantum computing to the digital signatures protecting bitcoin, alongside technical trade-offs for security upgrades. To limit information revealed during public transactions while meeting regulatory requirements, participants discussed potential solutions such as off-chain settlement, coin swaps, and zero-knowledge technology.
