Institutions Shift Focus from Bitcoin Ownership to Building Around It

A recent conference in New York has highlighted the shift in institutional focus from owning Bitcoin directly to building around it, according to TD Cowen's analysis of the event.

The conversation at the Sept. 28 Bitcoin Treasuries Conference centered on capital formation, collateral, and funding structures, as participants discussed various financial products such as bitcoin-backed bonds, preferred shares, and convertible securities.

Institutional discussions also turned to practical choices such as how Bitcoin fits in a portfolio and whether to use an exchange-traded fund (ETF) or self-custody. Blackrock representatives viewed ETFs and self-custody as complementary approaches, while TD Cowen noted that the machinery supporting those products is changing with the SEC's July 2025 decision allowing in-kind creation and redemption for crypto exchange-traded products.

Lending is another area where discussions are advancing, with Strategy Executive Chairman Michael Saylor proposing rules to let banks custody Bitcoin and lend against it. This would involve owners pledging Bitcoin as collateral while retaining exposure to price changes, and banks managing the risk of a decline in the collateral's value.