Bitcoin, to attract institutional investors in 2026, must reinvent itself as a 'profit-generating asset'

Source: DigitalToday Original Title: Bitcoin, by 2026, Holding Alone Won’t Be Enough… Key to Value and Revenue Generation Original Link:

The upward trend of Bitcoin(BTC) has sharply declined in the fourth quarter of 2025, and market outlook has turned downward again. Contrary to expectations that institutional investors would pour in, reaching all-time highs, Bitcoin is now in a situation where even recovering previous peaks is uncertain. Experts believe that unless Bitcoin evolves from a simple ‘digital gold’ to an asset that generates profits, it will be difficult to attract the attention of institutional investors.

According to the blockchain industry, a co-founder of a protocol stated that in early 2025, institutional Bitcoin purchases were active, but over time, yield-generating assets such as government bonds, corporate credit, and artificial intelligence(AI) stocks emerged as alternatives, decreasing Bitcoin’s appeal. He emphasized, “As Bitcoin’s rise halted, investors lost the reason to hold assets that do not provide returns,” and stressed that “Bitcoin should now become an asset that ‘generates income,’ not just a ‘holding asset.’”

He argued that to re-attract institutional investors in 2026, a regulated ‘cash-plus Bitcoin strategy(cash-plus Bitcoin strategies)’ is necessary. “Institutions are expecting a 2-5% annual return through transparent and collateralized strategies, not a 20% DeFi yield,” he explained. “For Bitcoin to establish itself as a core reserve asset from just a holding asset, this needs to be met.”

For Bitcoin to transition into a productive asset, it must serve as collateral supporting government bonds or credit. “Bitcoin needs to evolve from merely a holding asset to a funding asset for portfolios,” he said, highlighting that “this is the path to developing a versatile asset that can be used in both traditional financial markets and on-chain markets.” However, he also added that this requires strong transparency standards, on-chain reserve proof, and standardized risk management systems.