Our investment case of Bitcoin

The OG cryptocurrency

For too long, many savers have been unaware that their wealth has been slowly eroded by inflation, causing their financial goals to drift further away. We believe Bitcoin to be a unique asset for wealth preservation.

It was the first decentralized digital currency and has become widely recognized as a legitimate asset by governments, companies, and investors. The reason for this is that Bitcoin has many of the same characteristics as gold: a scarce supply, divisibility, portability, interchangeability with any other unit, global acceptance, and is not under the control of a single government, corporation, or authority.

What makes Bitcoin so interesting is that it betters gold in many of these characteristics. At 21shares, we believe Bitcoin presents a once-in-a-generation investment opportunity.

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Investment case for Bitcoin

1) Inflation hedge due to finite supply: Bitcoin is hard-coded with a finite supply of 21 million, of which 19.8 million have already been mined - the remaining supply is just 1.3 million Bitcoins (6%). This scarcity helps ensure Bitcoin should be an effective long-term inflation and currency devaluation hedge, in our view. While gold's supply is also scarce, it is not finite, with future supply varying depending on mining activity and new discoveries.

2) Accelerating and broadening adoption: Bitcoin is increasingly being adopted as a strategic reserve asset by both corporations and governments. With corporations now holding more than 4% of Bitcoin’s total supply 2  and countries like the US beginning to explore it for national reserves, institutional demand is growing nearly three times faster than new Bitcoin is being mined 3. The rise of crypto ETFs and ETPs is accelerating Bitcoin’s adoption by making it more accessible to both retail and institutional investors.

3) Decentralized and efficient network: Like gold, Bitcoin is not controlled by a single government or central authority. Its price cannot be manipulated for domestic or geopolitical gain, helping ensure that it maintains its value if fiat currencies devalue as governments or central banks grapple with their unsustainable levels of debt. Unlike gold, Bitcoin is easier to store and is highly portable, making it far more efficient to send across borders.

2.  CoinGecko, “Bitcoin Holdings by Public Companies” (accessed June 2025)

3. Binance: Bitcoin ETFs Buy 3x More Than Miners Produce in May

21shares Bitcoin price target: $138,500

By the end of 2025 (range $112,000 - $180,000)

21shares forecasts Bitcoin to reach $138,500 by year-end 2025, supported by its growing role as a macro hedge amid rising geopolitical instability. In addition, we expect the Federal Reserve to begin cutting rates in the second half of the year, injecting much-needed liquidity that could strengthen both crypto and equities. The narrative of Bitcoin as “digital gold” continues to gain traction, bolstered by persistent corporate treasury allocations and emerging sovereign adoption. With structurally limited supply and accelerating institutional inflows, Bitcoin is well-positioned to benefit from broader shifts in global capital markets and renewed demand for sound monetary assets.