Institutional involvement in the current bitcoin cycle is proving to be a significant force, according to CryptosRus Host, George Tung.

Tung discussed the rising impact of institutional investors, particularly through the rapid adoption of bitcoin ETFs, and the growing interest from Wall Street and global banks.

Tung also touched on how this cycle differs from previous ones, with nation-states like El Salvador leading the charge alongside institutional players.

George Tung stated, "Institutions will play and have a big impact on this cycle, and I think we've already seen that with the bitcoin ETFs." He highlighted the influence of BlackRock's IBIT ETF, noting, "The inflows have accounted for tens of billions already within nine months."

He further explained that while earlier cycles, such as those in 2013 and 2017, were largely driven by retail investors, this time around, "Bitcoin is driven by institutions."

According to CoinShares, more than $400 million poured into digital asset investment products last week — with most of that being directed to the bitcoin ETFs.

In addition to institutional investors, Tung highlighted the participation of countries in this cycle. "You're also seeing countries come in as well, led by El Salvador, but now you're hearing about other nation states also discussing the impact of bitcoin." He emphasized that this cycle is shaping up to be "Very different than all previous cycles."

On Monday, financial giant VanEck announced it bought more bonds from Argentina and El Salvador given their warming bets on bitcoin.

"Our decisions in Argentina and El Salvador were also motivated by better policies – specifically by more orthodox 2025 fiscal targets," VanEck Portfolio Manager Eric Fine wrote.