LONDON (IT BOLTWISE) – Institutional investors are increasingly discovering Bitcoin as a productive form of investment. New platforms like Rootstock and Babylon make it possible to earn returns without leaving the Bitcoin network. This development could fundamentally change the perception of Bitcoin as digital gold.
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Institutional perceptions of Bitcoin continue to evolve as investors increasingly look for ways to generate returns from their holdings. While Bitcoin has traditionally been viewed as digital gold, primarily used as a store of value, there is now a shift towards more productive uses. Platforms like Rootstock and Babylon are creating bridges between Bitcoin and high-yield protocols, drawing interest from asset managers and corporate treasurers.
Richard Green, director of Rootstock Institutional, emphasizes that Bitcoin holders, whether on the balance sheet or as investors, increasingly expect their holdings to be actively used. This expectation is reflected in the demand for Bitcoin-native solutions that generate returns without leaving the network. Rootstock enables the use of smart contracts secured by the hashing power of Bitcoin and offers products that return Bitcoin-denominated returns.
For many companies, using Bitcoin as a high-yield investment is not only a philosophical decision, but also a practical one. The cost of storing Bitcoin can be significant, and the ability to offset this with safe and stable return options is attractive. These options often offer annual returns of 1-2%, which is acceptable for conservative investors who do not want to take risks with packaged or bridged assets.
Despite these advances, returns remain thin compared to Ethereum’s staking economy. Andrew Gibb, CEO of Twinstake, explains that while the technology for Bitcoin staking exists, institutional demand takes time to develop. Projects like Babylon enable Bitcoin-based restaking for proof-of-stake networks, but the often low returns present a challenge. Nevertheless, it appears that institutional Bitcoin holders are no longer satisfied with passive appreciation and are looking for ways to put their holdings to productive use.
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