Article

The rise of bitcoin and why it matters now

25 November 2025
Chris Mellor
Chris Mellor
Head of EMEA ETF Equity Product Management
Contactless ATM machine for payment by Bitcoin cryptocurrency. Concept pay mobile phone.

Bitcoin has ushered in a new era of investing

Born out of the 2008 financial crisis, bitcoin emerged as the world’s first cryptocurrency – a decentralised alternative to traditional banking. Since then, it has sparked the growth of a vast digital asset ecosystem that is now reshaping how we think about money, investing, and the future of finance.

Today, digital assets are more accessible than ever. In the US, the arrival of spot bitcoin has driven a surge of demand from both retail and institutional investors, with a further boost after President Trump’s election win. In the UK, the FCA also opened retail access to crypto exchange-traded products in October 2025. According to the FCA, 12% of UK adults now own crypto, up from 10% in previous research. These developments reinforce Bitcoin’s growing role as the world’s largest cryptocurrency and a mainstream investment option.

Bitcoin has beaten every major asset class in recent years

In yet another banner year for the largest digital asset, Bitcoin delivered an impressive 122.5% gain in 2024 off the back of growing adoption (via spot bitcoin ETFs) and investor excitement for a likely shift toward friendlier, pro-crypto policy in the US. This brings the 10-year annualised return of bitcoin to 76.6%, outpacing every major asset classes.

Bitcoin’s impressive run has invited naysayers and bulls alike. Bitcoin bulls believe we are the early innings of a multi-year adoption cycle that should see prices climb higher, while sceptics believe digital assets are reflecting bubble-like conditions and highlight the severity of deep downturns like 2018 and 2022.

Things to consider before investing in bitcoin

The current cryptocurrency market cap at $3.7 trillion remains relatively small compared to other asset classes, but there is potential for this to grow, as we have seen in the 16-year history of cryptocurrencies.

While bitcoin’s underlying blockchain technology has broader application potential, many investors are drawn to bitcoin’s potential for rapid price appreciation. But there are other reasons to consider adding bitcoin to your portfolio, including portfolio diversification benefits and potentially hedging against inflation.

  • Portfolio diversification: Bitcoin’s distinct behaviour and tendency to move differently from major asset classes means it may help diversify portfolios
  • Long-term store of value: Bitcoin operates outside central bank control, giving it ‘digital gold’ qualities. It can diversify portfolios and act as a potential hedge against inflation.
  • A digital alterative: Bitcoin offers investors an alternative to banks and government-controlled currencies and can be sent and received anywhere in the world.
  • Consider the risks: Bitcoin’s price is volatile, and investors can face sharp losses. The cryptocurrency market is also largely unregulated, with limited protection if funds are lost due to fraud, hacking, or user error, so understanding the basics of buying direct is important. For a simpler solution, investment products like ETPs can offer efficient and easy access.

Investing in bitcoin and digital assets has never been easier

Investing in digital assets is now easier than ever. Bitcoin ETPs are becoming more accessible globally, and investors can also gain exposure to companies in the crypto ecosystem, such as miners, crypto buyers, and exchanges. From an investment perspective, cryptocurrencies and blockchain technology are undergoing rapid change, unlocking new opportunities for investors via direct ownership, derivatives, and broader market strategies. 

Miners

Companies that help run blockchain networks by validating transactions. In return, they earn digital assets like bitcoin.

  

Enabling technologies

Firms that provide the infrastructure for crypto, such as exchanges, where people buy/sell crypto, or mining equipment manufacturers

  

Cryptocurrency buyers

Companies that hold bitcoin on their balance sheets often to diversify their assets or show their support for cryptocurrency.

  

Trusts & ETPs

Exchange-traded products that invest at least 75% of their assets in cryptocurrencies

  

Blockchain ecosystem

Research and development of blockchain technologies for non-cryptocurrency-related purposes

  

Cryptocurrency ETPs

  • Cryptocurrency ETPs have gathered over $200bn in assets
  • Bitcoin ETPs globally have seen $42.5 in inflows over the past year
  • 12 countries offer bitcoin ETPs, but most are only available to sophisticated investors
  • The UK has recently opened retail access to bitcoin ETPs 

Related resources:

Related Insights

  • Ticker

    Name

    Sep '24 -
    Sep '25

    Sep '23 -
    Sep '24

    Sep '22 -
    Sep '23

    Sep '21 -
    Sep '22

    Sep '20 -
    Sep '21

    Dec '24 -
    Sep '25

    Dec '23 -
    Dec '24

    Dec '21 -
    Dec '24

    BTC Index

    Bloomberg Galaxy Bitcoin Index

    17.60%

    36.35%

    21.62%

    -15.47%

    30.00%

    22.38%

    122.49%

    103.61%

    Source: Bloomberg and Invesco, as of 30 September 2025. All returns are unhedged total returns in USD. Past performance is no guarantee of future results. An investment cannot be made directly into an index. 

    Investment risks

    The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

    Investing in cryptocurrencies is high risk. You should only proceed if you fully understand the associated risks. Any investment decision should be based on thorough review of the relevant documentation. It is strongly recommended that prospective investors seek advice from their professional advisers to determine whether such an investment is appropriate for their individual circumstances.

    Investment Risk: The value of the product depends on the performance of the underlying investment. Cryptocurrencies do not have any intrinsic value and may become worthless.

    Volatility Risk: Cryptocurrencies are subject to extreme price volatility as evidenced by the large daily movements in the price of Bitcoin since its inception. Cryptocurrency markets do not close and so sudden price swings could occur at any time.

    Risk of Hacking: A hack of a depositary wallet could result in the loss of the main body of the underlying cryptoassets backing one or more series of certificates. Such a hack could result in a loss of value of the certificates for all the certificate holders of the affected series. Certificate holders of the affected series would risk losing their entire investment.

    Liquidity Risk: The product may be adversely affected by a decrease in market liquidity which may impair the ability to exchange cryptocurrencies into fiat currencies.

    Regulation Risk in the Market of Cryptocurrencies: The price of cryptocurrency can be affected by factors such as global or regional political conditions and regulatory or judicial events.

    Important information

    Data for all sources – Invesco, Bloomberg, as at 30 September 2025, unless otherwise stated.

    This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Views and opinions are based on current market conditions and are subject to change.

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