"Despite a 67% surge in price volatility this March, Xapo members are increasingly treating bitcoin as permanent capital rather than a speculative chip, using structured liquidity tools to fund their lifestyles and investments without triggering tax events or losing market position."
"The most striking takeaway from the first quarter is the institutionalization of bitcoin-backed borrowing. While traditional trading volumes dipped, the appetite for liquidity through debt grew steadily."
"Active loans rose by 8.9% compared to the fourth quarter of 2025, and borrowing is no longer seen as a quick fix for market dips."
"Over half of all loans, or 53.9%, issued since the tool's inception are 365-day terms, suggesting that debt has become a permanent fixture of wealth management for these users."
The Xapo Digital Wealth Report for Q1 2026 reveals a significant shift among high-net-worth individuals in managing bitcoin. Instead of selling during market volatility, they are opting for bitcoin-backed loans, which increased by 8.9%. Institutional use of bitcoin as collateral has also risen, with 53.9% of loans now structured as long-term 365-day terms. This trend indicates a move towards treating bitcoin as a foundational wealth asset, particularly among Gen X and Millennials, who control 76% of Xapo's assets under management.
Read at news.bitcoin.com
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