The rise of bitcoin and why it matters now

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. 

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:

• Gain exposure to digital assets with ETPs
• Invesco Physical Bitcoin
• Invesco CoinShares Global Blockchain UCITS ETF Acc