Bitcoin’s surge to $93,000 in April is largely being driven by institutional investors, with retail interest in exchange-traded funds (ETFs) waning, according to John D’Agostino, head of Coinbase Institutional, in a recent interview with CNBC.
The rally, which began earlier this month, has seen significant institutional participation, with large entities and sovereign wealth funds increasing their Bitcoin holdings. Meanwhile, retail investors have pulled back from Bitcoin ETFs, contributing to a slower pace of growth in this sector. D’Agostino pointed out that institutional investors are taking a more strategic, long-term approach, while retail traders are missing out on the bigger investment opportunities.
Adding to this institutional momentum, Twenty One Capital, a new Bitcoin investment firm backed by major players like Tether, Bitfinex, and SoftBank, is set to launch with over 42,000 BTC. The firm will go public under the ticker “XXI” following a merger with Cantor Equity Partners, a SPAC valued at $200 million.
D’Agostino identified three key factors behind the growing institutional interest in Bitcoin: first, the global trend of de-dollarization, with nations and businesses moving away from reliance on the U.S. dollar; second, Bitcoin’s detachment from the volatile tech sector, making it an increasingly attractive asset; and third, Bitcoin’s rising role as an inflation hedge, garnering attention from commodities traders.
“Bitcoin has proven itself as a non-sovereign, finite asset similar to gold, and investors are increasingly viewing it as a reliable store of value,” D’Agostino said.
While Bitcoin has shown robust growth, other altcoins such as Ether (ETH), Solana (SOL), and Cardano (ADA) have seen less movement. The CoinDesk 20 index, which tracks the top 20 digital assets, has fallen by 3% over the past month, while Bitcoin has gained 7%.
In line with this, Bitcoin ETFs are seeing renewed interest, with SoSoValue data revealing that $900 million in inflows were recorded over two consecutive days this week. However, the month has also experienced periods of net outflows from Bitcoin ETFs, totaling approximately $1.21 billion as of April 23.
