Adam Back says institutional allocation will lead third wave of bitcoin adoption
The Blockstream CEO told Bitcoin Magazine that investment banks are beginning to recommend a 4 percent allocation in model portfolios.
Key takeaways
- 1Adam Back identified institutional asset management as the third wave of bitcoin adoption.
- 2Major investment banks are recommending bitcoin allocations between 2 percent and 4 percent.
- 3Bitcoin had a total market value of $1.52tn on 7 November 2026.
Blockstream CEO Adam Back said on 1 November that bitcoin is entering a third wave of adoption driven by institutional asset management. Speaking in an interview with Bitcoin Magazine, Back said that while individual mining and exchange-traded funds provided the first two waves, the next phase will involve professional managers integrating the asset into standard portfolios.
Back said that some major investment banks have already begun recommending a 2 percent to 4 percent bitcoin allocation in their model portfolios. This wave has not yet fully arrived but will eventually include indirect exposure through mutual funds, pension funds, and insurance products. Corporate treasuries that hold bitcoin on their balance sheets are also expected to contribute to this broadening of the market.
Back is a pioneer in the sector and his company, Blockstream, provides infrastructure for the bitcoin network. Bitcoin traded at $75,774 on 7 November with a total market value of $1.52tn, according to YourKhabri data. The asset remains the largest cryptocurrency by market capitalisation and has seen increased interest from Wall Street since the approval of spot ETFs in the United States.
The shift toward institutional management suggests that bitcoin may become a staple in traditional retirement and insurance accounts. Traders will watch for filings from large pension funds and updates to bank model portfolios as evidence of this transition. If these professional channels open, it could lead to more stable, long-term capital entering the market compared to the volatility of individual retail trading.
Reported and edited by the YourKhabri desk under our editorial policy. Nothing here is investment advice.