Bitcoin Investment Update
At Windsor Wealth we have been discussing Bitcoin as an asset class since 2020 when it was trading below $20,000. At the time many dismissed it as speculative hype. Things have moved on significantly.
Bitcoin has just reached a new all-time high of $120,000 this week. More importantly, it is now behaving like a legitimate global asset, and that changes how we think about its role in a diversified portfolio.
The Key Shift: Institutional Legitimacy
The real change is not just the price but who is buying.
The launch of Bitcoin ETFs in the United States has been a turning point. BlackRock’s Bitcoin ETF has already become one of its most profitable products, ahead of some long-established equity funds. That tells us demand is real and that the largest asset managers are now motivated to include Bitcoin in client portfolios.
When model portfolios begin to include even a one or two percent allocation, the impact on demand can be significant.
Corporate Treasuries Are Accumulating Bitcoin
A major trend that is only just beginning is the accumulation of Bitcoin by corporate treasuries. Companies are now using Bitcoin as part of their balance sheet strategy, with MicroStrategy leading the way.
This chart showing the largest corporate Bitcoin holdings, and it is striking how much Bitcoin is already in the hands of corporations. If this trend grows — and there is every reason to believe it will — available supply for new buyers will continue to tighten.
From a market perspective, this creates persistent upward pressure on the price, although we do not make short-term predictions. The important point is that corporations are treating Bitcoin as a strategic asset, which was unthinkable only a few years ago.
Supply Remains Scarce
While demand grows, supply is fixed. Bitcoin’s total supply is limited to 21 million coins, and a large portion is estimated to be permanently lost. New issuance is already less than one percent a year and will continue to fall over time.
This makes Bitcoin fundamentally different from traditional assets where supply can expand to meet new demand.
What Does This Mean for Investors?
We are not in the business of making price predictions. What we are observing is a maturing asset class with strong demand drivers, growing institutional adoption and a supply structure that cannot respond to that demand.
For many investors it may now make sense to hold a small allocation to Bitcoin as part of a diversified portfolio. For most people, this might mean between one and five percent depending on risk tolerance and financial goals.
This is not about betting everything on one idea. It is about sound portfolio management. A small position can provide meaningful upside if Bitcoin continues to grow and can add diversification because it behaves differently from traditional investments.
Final Thought
Bitcoin may have started life as a speculative experiment. It is now acting like an established asset class with strong tailwinds. For investors with a long-term mindset it deserves consideration as part of a well-constructed portfolio.