For many investors in London, crypto has always seemed both attractive and complicated. The returns can be high, but so are the risks, and navigating wallets, exchanges, and regulations is not for everyone.
Now, there’s a more straightforward way for institutions and individuals alike to gain exposure: crypto treasury companies listed on stock markets. These firms hold digital assets directly, giving shareholders a regulated entry point into the space without requiring them to own crypto themselves.
The Rise of Crypto Treasury Companies
Crypto treasury companies are public firms that hold digital assets like Bitcoin or Ethereum on their balance sheets. Instead of requiring investors to handle custody or private keys, these companies manage the assets directly. Investors then gain exposure by buying their shares on an exchange, giving them a regulated way to track crypto price movements without owning tokens themselves.
This model has strong appeal in London, where the Financial Conduct Authority (FCA) remains cautious with retail crypto trading. A listed stock provides both familiarity and oversight, two factors institutions often look for before committing funds.
At the same time, it creates new demand for supporting services. Custody providers ensure secure storage, while a cryptocurrency website development team can help these companies build the digital infrastructure they need, from investor portals and reporting dashboards to platforms that communicate treasury activity transparently. Clear, well-designed websites not only support compliance but also make it easier for investors to understand and trust what these treasuries are doing.
Why Investors are Interested
While the concept of crypto treasuries isn’t new, it is gaining traction due to a tightening Bitcoin supply and a growing number of institutions seeking alternatives to traditional assets. In fact, data from Glassnode earlier this year showed Bitcoin liquidity on exchanges at its lowest since 2018. When treasury companies accumulate Bitcoin at scale, they remove coins from visibility and supply, which can potentially drive the price up.
For investors, this represents two layers of value. First, they benefit from the direct price appreciation of the cryptocurrency held by these companies. Second, they benefit from being exposed to the supply shock effect that treasuries themselves create. The business model creates a multiplier effect on their potential returns.
Regulation in the UK
London’s financial system is based on regulation, and it’s this culture of regulation that helps crypto treasuries feel at home in the UK. We have seen in the direct purchase of crypto that the concerns of custody, fraud and market manipulation through direct purchases are always a concern for regulators.
In contrast, the shares in listed companies are well governed and easier for pension funds, asset managers and retail investors to own in their portfolios. In 2024, the UK government have indicated it wants to be a “crypto hub” with its policies also favouring innovation and consumer protection. While there are still criticisms of the framework’s transparency, treasury stocks add a level of regulated familiarity to its reputation as a safe financial haven.
Accessibility Through the Stock Market
One of the most significant advantages of crypto treasury companies is that they are accessible. Investors don’t have to sign up for an exchange or get acquainted with how to manage private keys. They simply buy and sell shares, just like any other listed stock. This makes it easier to access, which is one of the most significant obstacles to getting people to adopt crypto for a long time.
For institutions, easy access means liquidity. Significant funds demand vehicles they can invest in and unload without friction. Public markets provide a framework for this. This is especially true when dealing with large amounts, where trading in exchanges may not be feasible.
Learning From the Example of the United States
With firms like MicroStrategy and new treasury companies backed by major investors, the US has led the way, demonstrating concentrated buying and a significant impact on the market. London could follow, and if more UK-listed firms adopt the model, investors would gain exposure at home, and not abroad.
