Paolo Ardoino, Tether's CEO, anticipates greater incorporation of Bitcoin into mainstream finance, with an expected rise in interest from hedge funds, pension funds, and corporations in adopting the leading cryptocurrency.

Speaking at an online event by Bitfinex, where Ardoino also serves as CTO, and featuring Blockstream CEO Adam Back, he shared insights on the future of Bitcoin investment. Ardoino predicts a surge in investment from fund managers in Bitcoin, particularly after the U.S. introduction of a spot Bitcoin ETF, with many considering allocating up to five percent of their portfolios to Bitcoin.

Furthermore, Ardoino highlighted that corporations are beginning to maintain Bitcoin on their balance sheets, encouraged by the legitimacy offered by spot Bitcoin ETFs. Currently, only a select few companies, such as Tesla, Inc. and MicroStrategy Inc., have invested in Bitcoin, as reported by CoinGecko.

He believes this trend will expand, particularly as companies seek to diversify their assets in times of political turmoil. Ardoino's remarks followed the recent approval of the first spot Bitcoin ETFs in the U.S., which now boast assets totaling around $42 billion, contributing to Bitcoin's price surge to $64,000, a peak not seen since November 2021.

Addressing future regulatory changes, Ardoino suggests that policymakers will need to adapt to the evolving landscape, pointing to countries like El Salvador that have already adopted Bitcoin. He reflects on the initial skepticism surrounding Bitcoin ETFs, contrasting it with the current rush to launch such products.

On the legislative front, U.S. lawmakers are drafting bills for a comprehensive crypto regulatory framework, particularly focusing on stablecoins, though these are yet to be presented to President Joe Biden. Meanwhile, SEC Chair Gary Gensler has categorized Bitcoin as a commodity, setting it apart from many other cryptocurrencies, which he considers securities and thus subject to securities regulations.