Preston Pysh: Bitcoin community will stay skeptical of institutional adoption
Preston Pysh, co-founder of the Bitcoin-focused venture fund Ego Death Capital, told the Coin Stories podcast that early Bitcoin adopters are unlikely to drop their deep distrust of institutional involvement in the space.
Pysh argued that a core strand of Bitcoin culture — individuals who self-custody their coins and endured large drawdowns to support the network — views growing institutional activity with suspicion. Many in that cohort worry that “institutional-like” behaviors, such as the widespread use of derivatives, could change Bitcoin’s role and erode the very qualities that drew them to it.
He said this skepticism is visible in community conversations, where people ask whether the current wave of institutional interest is another round of schemes rather than genuine adoption. That wariness, Pysh suggested, is rooted in the community’s history: those who helped push Bitcoin past a trillion-dollar market cap often did so while steadfastly holding private keys and resisting short-term selling.
At the same time, Pysh acknowledged the counterargument that handing older coins to newer institutional holders can signify integration into mainstream finance. Others in the ecosystem have described such flows as evidence that Bitcoin is becoming part of established financial systems, rather than remaining solely a grassroots movement.
Pysh also warned that institutions will likely use Bitcoin differently than individual holders — in ways that could be difficult for long-time Bitcoiners to accept. That persistent cultural skepticism, he said, will continue to shape debates about what institutional adoption actually means for Bitcoin’s future.
Despite these tensions, large institutional interest is already apparent in industry research: a March report from Coinbase and EY-Parthenon found that a substantial majority of surveyed institutional investors plan to increase crypto allocations in 2025. citeturn1view0
