Bitcoin News Today: Coinbase CEO Urges 5–10% Crypto Allocation for Institutional Portfolios

Coinbase CEO Brian Armstrong has urged institutional investors to consider allocating 5–10% of their portfolios to cryptocurrencies, emphasizing the asset class's potential for growth and risk diversification. Speaking at the State of Crypto Summit, Armstrong argued that such allocations are essential in a rapidly evolving financial landscape, where digital assets are increasingly viewed as a legitimate and necessary part of diversified investment strategies [1]. His comments reflect a broader push by the crypto industry to gain institutional acceptance and highlight the maturing market infrastructure that supports large-scale investment [2].

Armstrong's recommendation is grounded in observed on-chain data indicating rising institutional flows, particularly toward Bitcoin (BTC) and Ethereum (ETH). He stated, “We are seeing on-chain data confirm rising institutional flows, especially into BTC and ETH,” underscoring the growing interest from institutional actors [1]. This trend is supported by the recent listing of Coinbase on the S&P 500, which has exposed the company to a broader base of institutional investors and likely amplified demand for crypto exposure [2].

The CEO’s call for institutional allocation aligns with a broader industry movement. Reports indicate that long-term institutional investment requests in 2025 have reached 12, signaling a consistent and deliberate shift toward crypto as a strategic asset [1]. Furthermore, digital asset treasury (DAT) investments have now surpassed venture funding as the dominant capital flow in the crypto sector this year, with companies collectively raising over $15 billion. This suggests that traditional financial institutions are increasingly viewing crypto not as speculative assets but as core components of long-term portfolios [3].

Armstrong also emphasized that crypto adoption is not just about investment but about reshaping the financial system. He noted that institutional interest in tokenized and decentralized financial systems is growing, with potential implications for market structures and economic regulations. His vision includes greater funding for projects under Coinbase and the broader acceleration of market evolution through institutional diversification into alternative crypto assets [1].

The U.S. government has also shown signs of integrating crypto into its financial framework. For example, a proposed legislative bill aims to see the country acquire 1,000,000 BTC over the next five years. Meanwhile, President Trump signed an executive order recognizing Bitcoin as a strategic reserve asset [1]. These developments reinforce the growing legitimacy of crypto in both public and private financial sectors.

Analysts note that as more companies—particularly large corporations and financial institutions—begin to treat Bitcoin as a reserve asset, the demand for Bitcoin is expected to outpace its limited supply, potentially driving sustained price appreciation [1]. The current supply dynamics, with only a small fraction of Bitcoin available for trading, suggest that the market is approaching a structural imbalance that could support higher prices.

Armstrong has not outlined specific steps for implementing institutional allocations but has stressed the importance of regulatory clarity and infrastructure development to support large-scale adoption. As the crypto market continues to mature, the role of institutions will likely become even more critical in shaping its future.

Source: [1] Bitcoin News Today: Institutional Crypto Adoption Gains Momentum... (https://www.ainvest.com/news/bitcoin-news-today-institutional-crypto-adoption-gains-momentum-coinbase-ceo-advocates-5-10-portfolio-allocation-2508/) [2] Crypto stocks tumble as investors go into risk-off mode (https://www.mitrade.com/insights/news/live-news/article-3-1052412-20250820) [3] Digital asset treasuries eclipse venture funding as... (https://www.fastbull.com/news-detail/digital-asset-treasuries-eclipse-venture-funding-as-companies-news_6600_0_2025_3_7908_3)