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Bitcoin's Scarcity Drives Institutional Demand, Says Coinbase Executive

Coin WorldMonday, May 12, 2025 4:02 pm ET
1min read

Coinbase's Head of Institutional Strategy, John D’Agostino, has highlighted scarcity as a key driver behind the surge in demand for Bitcoin (BTC) from institutional investors. In a recent interview, D’Agostino identified four primary reasons for the increasing interest in BTC exchange-traded funds (ETFs).

According to D’Agostino, the first three reasons are that BTC is no longer trading as a tech bundle, its role as an inflation hedge, and the "catch up to gold" type trade. The fourth reason, he noted, is the scarcity of Bitcoin. D’Agostino explained that Bitcoin miners cannot produce the cryptocurrency fast enough to meet the overwhelming demand, making it inappropriate to view BTC as a tech stock. He suggested that viewing Bitcoin as a commodity similar to gold could be a useful framework, especially in relation to the gold trade.

D’Agostino also emphasized an often-overlooked aspect of the ETF inflows. He pointed out that asset managers have not been allowing their salespeople or financial advisors to recommend BTC ETFs. This restriction is unusual, as it is akin to a shoe salesman not being able to recommend a specific brand. D’Agostino speculated that this situation will change in the future, and when it does, the impact on the market could be significant. He left it to the viewers to consider what might happen when brokers are finally able to recommend these ETFs to their clients.

Ask Aime: Why is Bitcoin's supply limited?

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TheLonelyWind
05/13
$COIN anyone could have predicted it'd join the S&P500 wow 10x for all calls expiring this week crazy congrats
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TourNo8333
05/12
$COIN 🔥🔥
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confused-student1028
05/12
@TourNo8333 I had $COIN, sold early. FOMO hitting hard now.
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Steric-Repulsion
05/12
@TourNo8333 How long you holding $COIN? Got any targets in mind?
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Majestic-Weekend-484
05/12
$COIN imagine btc or spy drop
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Dynasty__93
05/12
$COIN every time it's time to move Bitcoin drops and takes this down ughh POS
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TermoTerritorial999
05/12
@Dynasty__93 How long you been holding $COIN? You think it's just a dip or a bigger trend?
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Kooky-Information-40
05/12
Bitcoin's scarcity is the talk, but it's still just a digital token. When ETFs get their reps, that's when the real game starts—or maybe just another round of FOMO.
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dsua
05/12
@Kooky-Information-40 LOL, just another token, right?
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Hoo_Bear
05/12
@Kooky-Information-40 True, BTC's just a token, but scarcity's driving demand. ETFs could get a boost when reps are finally allowed, might see more FOMO action.
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yeahyoubored
05/12
Wow!🚀 COIN stock went full bull as tools from Pro benefits. Cashed out $140 gains!
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whatclimatecrisis
05/12
@yeahyoubored How long were you holding COIN before cashing out?
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