Bitcoin for the Rich? Institutions May Price Out Retail Investors
At the LONGITUDE conference in Dubai on May 1, 2025, industry leaders cautioned that institutional Bitcoin buy-ins may soon price out retail investors, making the asset unaffordable to them.
Sergej Kunz, co-founder of 1inch, stated, “Any retail investor needs to be looking to buy at least one Bitcoin — soon it won’t be able.” Yat Siu, co-founder of Animoca Brands, mentioned that Bitcoin’s appeal as a hedge against inflation and geopolitical risks is a key driver of institutional interest. The panel noted how the limited supply of 21 million tokens and increasing institutional demand can potentially limit access for smaller investors.
ETFs and Treasuries Dominate BTC Ownership
Current market data shows high institutional activity. Bitcoin exchange-traded funds (ETFs) recorded inflows exceeding $3 billion in April 2025, driven by macroeconomic uncertainty, a weakening U.S. dollar, and a 90-day pause on reciprocal tariffs announced by President Donald Trump.
As of May 1, 2025, BTC ETFs and institutional funds hold $128 billion in BTC, corporate treasuries account for $73 billion, and sovereign nations, including the United States, China, and the UK, hold over $130 billion, primarily from seized assets.
Corporate Bitcoin Holdings (Source: BitcoinTreasuries)
This focus on ownership reduces available supply, creating an upward pressure on prices.
Price Forecasts Pose Challenge for Everyday Buyers
Analysts project Bitcoin could reach $200,000 in 2025 and $1 million by 2029, led by ETF inflows and potential government accumulation. Such price surges could make BTC inaccessible to retail investors, who lack the resources to compete with institutional buyers.
Kunz suggested that if the United States establishes a BTC strategic reserve, smaller nations—and by extension, retail investors—could face even greater barriers to entry.
The panel’s warnings are also in line with discussions on X, where traders and market enthusiasts raise similar concerns about retail investors being priced out.
BTC’s Shift to Reserve Asset Worries Grassroots Investors
The growing institutional presence and dominance could position Bitcoin as a reserve asset similar to a global currency. Although this validates Bitcoin’s value, it potentially risks sidelining retail investors at the grassroots level, who have led grassroots adoption in the past.
With institutional buying changing market dynamics, retail participants may need to act quickly to secure positions before prices surge further.
The LONGITUDE panel makes it clear that retail investors will need to adjust to this new situation, as institutional buying keeps changing the availability and potential of BTC.
