Sovereign wealth funds are accumulating Bitcoin as retail traders exit the market. John D’Agostino of Coinbase Institutional notes this shift in investment patterns, comparing Bitcoin to gold as a hedge against inflation. Significant inflows into Bitcoin and Ether ETFs signal renewed institutional interest, coinciding with a decline in the US dollar’s value. Bitcoin currently trades at $92,712, reflecting strong institutional confidence.
Sovereign wealth funds and large institutions have been net buyers of Bitcoin throughout April 2025 while retail traders are reducing their exposure in exchange-traded funds (ETFs) and spot markets, according to Coinbase Institutional’s head of strategy, John D’Agostino. He shared these insights during a CNBC interview, indicating a shift in investment behaviour.
D’Agostino compared Bitcoin to gold, noting that many institutional investors now view Bitcoin as a hedge against inflation and economic uncertainties. He highlighted Bitcoin’s core characteristics, including scarcity, immutability, and portability as non-sovereign assets, which he believes are reflective of its safe-haven status.
He emphasised that Bitcoin is among a limited selection of assets that share similar qualities to gold, suggesting that its trade patterns align with the expectations of those who believe in its long-term value. The current scenario has positioned Bitcoin as a vital asset in institutional portfolios.
Recent data from SoSoValue indicates Bitcoin ETFs attracted significant inflows, totalling $913 million, with Ether ETFs adding $39 million, marking the highest single-day inflow in months. This influx hints at a new accumulation phase for institutions looking to reassert their digital asset allocations amidst rising prices.
The renewed interest in digital assets aligns with a notable decline in the US dollar, which recently hit a three-year low against other currencies and a decade-low against the Swiss franc. This downturn in the dollar, driven by declining investor confidence in the US economy, may be incentivising institutions to consider Bitcoin as a reliable store of value.
As of the latest data, Bitcoin trades at $92,712, having gained 10.16% over the past week, despite a recent dip of 0.77%. This price stability, combined with robust institutional inflows, lends credence to D’Agostino’s assertion that sophisticated investors are acknowledging Bitcoin’s intrinsic value amid the current macroeconomic landscape.
