How the US Crypto Stance is Reshaping Institutional Investments Globally

The US government's stance on digital assets has undergone a dramatic shift in recent weeks. This transition—from a crypto-skeptical approach to a pro-cryptocurrency stance—is creating a more favorable environment for institutional investments not only within the US but also on a global scale.

There are already clear signs of this shift. In addition to Binance securing a $2 billion institutional investment from MGX, over $104 billion has flowed into Bitcoin ETFs and trusts since the SEC's approval of the first spot US Bitcoin ETFs in January 2024.

With institutions, governments, and enterprises accumulating over 3 million BTC as of March 13, 2025, institutional demand for cryptocurrencies continues to rise. The key question now is: how much further can a crypto-friendly US policy accelerate this trend?

Institutional Appetite for Crypto Grows

Over the last few months, institutional crypto adoption has increased significantly. Once viewed as a fringe asset class, cryptocurrencies are now in high demand among large-scale investors, including hedge funds, pension funds, and family offices.

According to an October 2024 report by PwC and AIMA, 47% of traditional hedge funds now hold digital assets, up significantly from 29% in 2023. Investors are also eagerly awaiting the approval of a new wave of spot crypto ETFs in the US, with companies like VanEck, 21Shares, and Canary Capital filing at least 16 applications to launch ETFs tracking XRP, SOL, and cryptocurrency indices.

During the 2024 bull market, crypto hedge funds posted significant gains, surpassing major stock market indices like the S&P 500, NASDAQ 100, and Dow Jones Industrial Average. Brevan Howard Digital, for instance, surged 51.3% in 2024 alone.

Institutional investors increasingly view cryptocurrencies as a store of value, inflation hedge, and diversification tool. However, their focus has expanded beyond crypto assets themselves to companies providing blockchain and crypto-related services. The best example of this trend is MGX's massive $2 billion investment in the world's leading crypto exchange, Binance.

According to a March 12 press release, the deal represents the largest single investment in a crypto firm, the biggest placement paid in stablecoins, and Binance's first institutional raise. As Binance CEO Richard Teng put it: "This investment by MGX is a significant milestone for the crypto industry and for Binance."

Teng continued, "Together, we are shaping the future of digital finance. Our goal is to build a more inclusive and sustainable ecosystem, with a strong focus on compliance, security, and user protection.”

Ahmed Yahia, MGX's Managing Director and CEO, emphasized that this investment underscores his company's commitment to blockchain's transformative potential. He noted that the rapid rise in institutional adoption has created an urgent demand for secure, compliant, and scalable blockchain infrastructure.

"Binance has long been a driving force in cryptocurrency innovation, from exchange technology and tokenization to staking and payments. Together, we are committed to building a more inclusive and robust digital finance ecosystem," said Yahia.

An Ongoing Shift in US Crypto Policy

The current shift in US crypto policy could further accelerate the growth of institutional demand for digital assets. Since President Donald Trump 's inauguration on January 20, the US government's stance on crypto has been undergoing a transformation.

On December 5, 2024, Trump appointed David Sacks, a former PayPal executive and crypto advocate, as the White House AI & Crypto Czar. Sacks is expected to shape US digital asset policy, providing long-awaited regulatory clarity. His appointment aligns with Trump's pro-crypto stance, which was further reinforced by the nomination of Paul Atkins as SEC chair.

On January 23, 2025, Trump signed an executive order to create a crypto-friendly regulatory environment. The order directs federal agencies to reassess crypto regulations within 60 days, explore a national digital asset stockpile, and bans work on a US central bank digital currency (CBDC). While the order itself is not a law, it signals a major policy shift, encouraging lawmakers and regulators to support the growth of the crypto industry.

On March 7, 2025, Trump established a Strategic Bitcoin Reserve and US Digital Asset Stockpile. The Bitcoin reserve, funded by seized government-owned BTC, will act as a long-term store of value. The digital asset stockpile, overseen by the Treasury Department, will include other forfeited cryptocurrencies, but the government will not make additional crypto purchases. The order also mandates a full audit of federal crypto holdings, improving transparency in government crypto policies.

These developments mark a major shift in US crypto policy, which could further accelerate institutional adoption. As the US shapes a crypto-friendly regulatory landscape, institutional and government participation in digital assets is set to grow.

The Future of Institutional Crypto Adoption

The US government's shifting crypto stance is boosting institutional confidence in digital assets. With clearer regulations and major investments like MGX's $2 billion Binance deal, crypto is becoming increasingly integrated into traditional finance. The rise of Bitcoin ETFs and the Strategic Bitcoin Reserve further cements its expanding role.

As institutional adoption accelerates, financial markets could experience greater liquidity and innovation. With hedge funds and corporations expanding their crypto holdings, other nations may adjust their regulatory frameworks, reinforcing crypto's position in global finance.