Institutional investors can provide great support to spread awareness and advocate in favor of law and regulations for startups co-related with bitcoin. But we should have kept in mind that institutions actions are profit-driven and want to pass laws in favor of their own interests, which sometimes may not align with the interest of retail investors like us. However their influence can provoke politicians to pass laws in their favor like lower tax rate, low interest over borrowing etc.
It is true that institutional investors can provide support to Bitcoin and other cryptocurrencies because there is no other asset that is promising right now. Stock are extremely inflated and Bitcoin is seeing more interest than gold, people are even looking for way to exist stocks and put it into other asset that can yield more that 10% annual returns. The whales have huge impact in the crypto space, whether they like bitcoin or not, they have to face the fact that bitcoin is the fastest horse in the race for profit.
Buying Bitcoin to hedge against high monetary inflation is a better decision than buying gold, despite the government trying to suppress Bitcoin, they will do everything to see that that fiat system works but due to inflation and all traditional asset will not yield anything in the coming year, so switching to Bitcoin for a even small portion of their portfolio is a necessity in my opinion. The current period is a good one because Bitcoin is promised a very strong bull market in the coming years. We must also take advantage of it.