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Institutional bitcoin demand may hinge on loans and collateral use

Institutional investors\' future demand for bitcoin could be driven by financial uses such as lending, collateral and corporate treasury management, an analysis said. Cointelegraph reported that bitcoin infrastructure developer RootstockLabs said bitcoin\'s role could expand beyond a store of value. RootstockLabs estimated 1.5 percent of supply is used in lending and bitcoin-based finance and put identifiable institutional holdings at about 3.9 million BTC. It also cited risks including defaults, custody failures and volatility.