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Institutional Investors Boost Bitcoin Holdings by 13% in April

Coin WorldWednesday, Apr 23, 2025 5:45 pm ET

1min read

In April, large institutional investors, including sovereign wealth funds and major insurance pools, increased their exposure to Bitcoin (BTC) as part of their broader portfolio strategies. This shift was driven by macroeconomic changes and evolving global monetary conditions, according to John D’Agostino, the institutional head of strategy at Coinbase.

During an interview, D’Agostino explained that three key factors influenced institutional flows into Bitcoin during April. These factors include de-dollarization trends, a reassessment of Bitcoin’s identity relative to technology equities, and its role as an alternative inflation hedge alongside gold. He emphasized that the inflows came from long-duration capital, such as sovereign wealth funds and insurers, rather than retail or speculative actors.

D’Agostino noted that the April 2 US tariff announcement by the administration prompted discussions among global allocators about the durability of the US dollar as the dominant reserve currency. Some sovereign wealth funds reassessed their strategy of holding US dollars via gold or other reserve assets and instead opted to increase direct exposure to Bitcoin, purchasing it in their native fiat currencies. These entities saw Bitcoin as a non-sovereign store of value that could serve as a hedge in scenarios where demand for US assets declines, mirroring broader de-dollarization themes that have gained traction among certain emerging market policymakers and reserve managers in recent years.

While Bitcoin exchange-traded funds (ETFs) flows remained net negative through much of April, institutional direct purchases continued. D’Agostino explained that Coinbase observed persistent net buying activity from patient capital allocators despite this movement. He emphasized that ETF activity does not fully capture institutional behavior, particularly among sovereign buyers who do not publicly report positions. Additionally, long-term holders acquiring spot Bitcoin during market retreat periods explain the decoupling between ETF outflows and price strength. Despite retail net selling, this divergence resulted in a 13% monthly gain for Bitcoin.

Beyond geopolitical considerations, D’Agostino said institutional buyers increasingly view Bitcoin as an inflation hedge. As BTC decouples from leveraged tech trades that previously distorted its behavior, its core attributes, such as fixed supply, immutability, non-sovereign control, and portability, are becoming central to its renewed investment thesis. He noted that Bitcoin often appears alongside gold and real estate in the top five assets of multi-year inflation hedge models developed by global macro traders. D’Agostino concluded that while sovereign buyers are unlikely to disclose exact allocations, the continued presence of long-duration capital in April’s price action suggests increasing institutional conviction in Bitcoin’s role as a strategic reserve asset.

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