Bitcoin layer-2 developers are actively promoting the concept of BTCFi, positioning it as the next significant breakthrough that could unlock a wave of institutional investment and participation in the cryptocurrency market. They argue that BTCFi, by enhancing the utility and scalability of Bitcoin through innovative layer-2 solutions, would provide institutional investors with the tools and infrastructure they need to engage more fully in the Bitcoin ecosystem, ultimately fostering greater adoption and integration of Bitcoin within traditional financial frameworks.
source: https://www.coindesk.com/business/2026/02/12/bitcoin-layer-2-builders-pitch-btcfi-as-the-next-institutional-unlock