Asia Morning Update: Institutional Flows Into Bitcoin Are Growing Stronger, Not Weakening

Institutional Bitcoin Buying Still Robust Despite Recent Slowdown, Saphira’s Dyment Says

Institutional appetite for bitcoin remains strong even as spot market flows have cooled in recent weeks, according to Jeff Dyment, fund manager at Saphira Group.

In a note to CoinDesk, Dyment urged investors not to overreact to temporary dips in activity, emphasizing that institutional adoption typically progresses in bursts rather than in a steady line.

“Yes, the pace of buying has slowed, but institutional flows always come in waves,” Dyment wrote. “Short-term movements are ripples on the surface of a rising tide of adoption.”

While Michael Saylor’s Strategy added only 16,000 BTC last month—a steep drop from the record 171,000 BTC purchased in December—Dyment sees this as a natural breather, not a reversal of the broader trend.

Dyment cited several data points underscoring continued institutional momentum:

• Corporate Adoption: Fifty-one new corporate treasuries added bitcoin to their holdings in the first half of 2025, matching the total from the entire 2018–2022 period and marking a 375% year-over-year increase.
• Public Company Holdings: Publicly traded companies now hold 848,902 BTC, roughly 4% of bitcoin’s total supply, having added 131,000 BTC in Q2 alone.
• ETF Expansion: BlackRock’s IBIT fund has grown into the world’s largest ETF, holding 699,000 BTC (over 3.3% of total supply). Altogether, U.S. spot bitcoin ETFs hold around 1.25 million BTC, or 6% of the total supply, less than two years after launch.

Further optimism comes from derivatives markets. Singapore-based QCP Capital reported that large traders have been actively positioning for higher prices, including buying September $130,000 bitcoin calls and maintaining call spreads between $115,000 and $140,000.

“Volatility remains low historically, but if bitcoin breaks above $110,000, it could reignite demand for volatility trades,” QCP said in a note Monday.

Some analysts have pointed to weaker spot flows and declining blockchain activity as caution signals, but Dyment remains confident. “Wall Street has immense capital waiting on the sidelines, ready to enter the crypto markets at the right moment,” he said.

BTQ Introduces Quantum-Safe Stablecoin Network

In the stablecoin sector, BTQ Technologies has launched its Quantum Stablecoin Settlement Network (QSSN), aiming to future-proof digital currencies against threats from quantum computing.

The QSSN platform is designed to accommodate quantum-secure stablecoins, including concepts like JPMorgan’s proposed USD deposit token (JPMD). It leverages dual cryptographic signatures—combining traditional ECDSA with Falcon-512, a post-quantum standard—to secure critical operations such as minting and burning.

This hybrid approach ensures compatibility with existing token standards and wallet infrastructure while introducing quantum resilience.

The announcement arrives as the stablecoin market exceeds $225 billion in market cap, and U.S. lawmakers debate regulatory requirements for digital dollar alternatives.

Pending legislation, like the GENIUS Act moving through Congress, seeks to establish national standards for fiat-backed stablecoins and promote quantum-safe cryptographic adoption.

BTQ, which has worked alongside the National Institute of Standards and Technology (NIST) for over a decade, hopes its new system will become a cornerstone of regulatory and technological frameworks for the coming quantum era.

Markets Snapshot

• Bitcoin (BTC): Down 1.02% from July 6 (22:00 UTC) to July 7 (21:00 UTC), dropping as low as $107,519.64 before recovering to near $108,000. On-chain data showed strong buying support between $106,738 and $98,566, spread across 1.68 million addresses.
• Ethereum (ETH): Gained 1.67%, fluctuating between $2,529 and $2,604. Solid support held at $2,530 amid over $1.1 billion in institutional inflows.
• Gold: Initially slipped on dollar strength but rebounded as safe-haven demand rose due to tariff threats. Long-term forecasts see potential highs of $4,000.
• S&P 500: Fell 0.79% to 6,229.98 after former President Trump proposed new tariffs on imports from seven countries, including South Korea and Indonesia.
• Nikkei 225: Rose 0.36% as Asian markets stayed largely resilient despite geopolitical concerns and potential U.S. trade tensions.