Matrixport explained in its latest analysis the reasons behind institutions' recent interest in Bitcoin! Here are the details.

In the latest analysis released by the crypto financial services company Matrixport, it was noted that Bitcoin is in the process of transforming from a high-risk investment vehicle to a more suitable and structurally safe asset class for institutional investors.

Matrixport: Bitcoin is Transforming into a New Asset Class for Institutional Investors

According to Matrixport, the most ideal role for Bitcoin on Wall Street is to be used as an "independent" investment vehicle with low correlation to traditional assets for portfolio diversification. This way, it can provide protection against market fluctuations and can be comfortably included in institutional portfolios.

However, the report emphasized that the correlation between Bitcoin and US stocks is still at a high level of 72%. This indicates that Bitcoin is not yet moving completely independently from traditional markets.

Recently, although a certain weakening has been observed in this correlation, this situation is associated with Bitcoin lagging behind the S&P 500 as U.S. stock markets reach record levels.

In contrast, the decrease in Bitcoin's volatility is particularly drawing the attention of institutional investors, who are sensitive to risk management.

Matrixport highlighted the risk profile of Bitcoin, stating that "another criterion as important as return for institutional investors is the predictability and stability of the investment."

As a result, the following assessment was made in the Matrixport analysis: "The decrease in volatility and the reduction in correlation with US stock markets is making Bitcoin an asset that can be included in institutional investment portfolios. This transformation indicates that Bitcoin has evolved from a high-risk speculative instrument to a new generation of asset class that is more suitable for institutional balance criteria."