Bitcoin and Wall Street: Insights from Galaxy Digital’s Alex Thorn

At the recent MicroStrategy World: Bitcoin for Enterprise conference, Alex Thorn, head of research at Galaxy Digital, provided valuable insight into the changing landscape of Bitcoin adoption on Wall Street and in corporations.

In an interview with Bitcoin Magazine, Thorn explores how Wall Street is beginning to embrace Bitcoin, the dual nature of Bitcoin’s role as both a financial asset and a technological tool, and how both institutional investors are beginning to view Bitcoin as a safe haven asset. I did. .

Bitcoin: Financial Asset or Tech Tool?

When asked whether companies are more likely to view Bitcoin (BTC) as a treasury asset or leverage the underlying technology, Thorn acknowledged that it’s likely some of both.

“Those are the same questions we have for the average user,” he said. Thorn highlighted how the use of Bitcoin varies depending on region and need, drawing on insights from LightSpark’s David Marcus, who spoke at the event.

In countries where currencies are falling, Bitcoin serves as a store of value. Conversely, in places like Bitcoin Beach in El Salvador, there is a strong enthusiasm for using it as a medium of exchange.

Thorn highlighted the potential for businesses to leverage Bitcoin technology for global remittances.

According to Thorn, businesses can benefit from solutions like LightSpark, OpenNode, and Voltge that make it easy to use Bitcoin’s Lightning Network as a payment method without holding any assets.

Thorn concluded that both uses were viable, depending on the circumstances. “Honestly, it’s hard to know.”

Bitcoin normalization

The conversation then moved to Bitcoin adoption on Wall Street and the effectiveness of spot Bitcoin ETFs.

Thorn sees Bitcoin becoming more normalized, in part due to the proliferation of accessible investment vehicles such as spot Bitcoin ETFs.

“There are currently a variety of ways to access Bitcoin,” he explained.

“Not only do we have ETFs that are very accessible to both retail and institutions, but we also have institutional companies for years that make it easy for institutions to buy (Galaxy is one of them). Rivers, Swan and Coinbases as well as spot Bitcoin,” he added.

Thorn also pointed to macroeconomic factors driving Bitcoin’s appeal. He noted a growing awareness among financial leaders such as Jamie Dimon and Jay Powell about the unsustainability of the U.S. national debt, a traditionally held belief among gold advocates.

This realization has made it an increasingly attractive investment.

“You see this when you talk to macro hedge funds,” Thorn said, noting that many of them have been trading Bitcoin for years.

Bitcoin ETFs and Corporate Finance

Addressing the potential impact of spot Bitcoin ETFs on corporate treasuries, Thorn drew parallels with the gold market since 2006 following the approval of the first gold ETF.

While he acknowledged Bitcoin’s historic four-year boom and bust cycle, he suggested that current interest is driven by more sophisticated factors than in the past.

“This is not a wave of people hearing about Bitcoin for the first time,” Thorn said, hinting at deeper, strategic interest among investors.

Thorn has observed growing curiosity among long-term investors, such as endowments and pensions, who are re-engaging with Bitcoin after initial hesitation.

According to Thorn, these investors with a long-term perspective see Bitcoin as a hedge in a volatile risk environment.

“Bitcoin sits in the gap between risk and hedging,” Thorn explains, indicating that although Bitcoin is not yet traded as a mainstream hedge, awareness of it is evolving.

Generational change and future adoption

Finally, the discussion touched on generational dynamics influencing Bitcoin adoption.

Thorn acknowledged that older generations are often hesitant to embrace new technology. However, he pointed out that the introduction of spot Bitcoin ETFs could ease this transition by simplifying access.

“Younger generations are more (rapidly adopting) innovations,” Thorn noted, adding that a transfer of wealth to younger generations who are more familiar with Bitcoin could increase adoption rates.

Thorn also emphasized the role of financial advisors in this transition.

Many people rely on advisors to manage their investments, and with spot Bitcoin ETFs becoming available on asset management platforms, advisors can introduce Bitcoin into their clients’ portfolios. This could result in a significant influx from older people who may be reluctant to participate directly in their assets.

In conclusion, Alex Thorn’s insights from the conference highlight Bitcoin’s multifaceted future.

Bitcoin’s role as a financial asset, technical tool, and macroeconomic hedge is expanding.

As a generational shift occurs and spot Bitcoin ETFs become more widespread, Bitcoin adoption is expected to increase among both corporate and individual investors.