Bitcoin Investment Shifts: Institutions Focus on Store of Value as Early Holders Cash Out

BlackRock Clients Dismiss Bitcoin Payment Potential

Institutional investors purchasing Bitcoin through BlackRock, the world's largest asset manager, are not betting on the cryptocurrency's potential as a global payment network, according to the firm's head of digital assets.

"I think for us, and most of our clients today, they're not really underwriting to that global payment network case," Robbie Mitchnick said during a podcast interview published Friday ^[1]. He characterized Bitcoin's payment potential as "sort of maybe out-of-the-money-option-value upside" and described that scenario as "a little bit more speculative" ^[1].

Instead, BlackRock's clients remain focused on Bitcoin's "digital gold" or store-of-value thesis ^[1]. Mitchnick acknowledged that achieving widespread payment adoption would require significant technological progress: "There's a lot that needs to happen in terms of Bitcoin scaling, Lightning, and otherwise to make that possible" ^[1].

Stablecoins Emerge as Payment Solution

While Bitcoin struggles to gain traction in payments, stablecoins have found "massive product market fit as a payment instrument," according to Mitchnick ^[1]. He noted that stablecoins could expand "beyond just the sort of crypto trading ecosystem and DeFi to actually doing retail remittance payments, corporate, multinational, cross-border transactions, and capital market settlement activity" ^[1].

This development has prompted ARK Invest CEO Cathie Wood to lower her 2030 Bitcoin price prediction by approximately $300,000 from her original $1.5 million forecast. "Stablecoins are usurping part of the role that we thought that Bitcoin would play," Wood explained, citing stablecoins "scaling faster" than expected ^[1].

Early Bitcoin Adopters Take Profits

As institutional interest centers on Bitcoin's store-of-value properties, prominent early holders are cashing out significant positions. Owen Gunden, one of Bitcoin's earliest long-term holders, sold his entire stash of 11,000 BTC—valued at approximately $1.3 billion—in October and November ^[2].

Robert Kiyosaki, author of "Rich Dad, Poor Dad," announced Friday that he sold all his Bitcoin holdings, valued at about $2.25 million. Kiyosaki, who originally purchased BTC at around $6,000 per coin, sold at the $90,000 level and plans to redirect profits into income-producing businesses ^[2].

Despite the sale, Kiyosaki maintained his positive outlook: "I am still very bullish and optimistic on Bitcoin and will begin acquiring more with my positive cash flow" ^[2].

Market Implications and Concerns

Bitfinex analysts identified selling pressure from long-term holders and leveraged liquidations in crypto derivatives markets as the main factors driving recent price drawdowns ^[2]. However, they emphasized that Bitcoin's fundamentals remain strong and attractive to institutional investors who will continue adopting BTC ^[2].

Concerns exist about retail investor conviction during market stress. Vineet Budki, CEO of venture firm Sigma Capital, warned that retail investors will likely sell at the first sign of trouble, potentially driving a 70% price drawdown in the next bear market due to this lack of conviction ^[2].

The divergence between institutional focus on Bitcoin as digital gold and retail susceptibility to market volatility highlights an evolving investment landscape where Bitcoin's role continues to be redefined by market participants with vastly different risk tolerances and investment horizons.