Coinbase Exec Highlights Institutional Involvement in Bitcoin’s April Surge, While Retail Investors Abandon ETFs

Bitcoin’s impressive rally to $93,000 in April is being primarily driven by institutional investors, not retail traders, according to John D’Agostino of Coinbase Institutional, who spoke with CNBC.

The cryptocurrency’s sharp rise this month has been fueled by large institutions and sovereign wealth funds that have been strategically accumulating Bitcoin, according to D’Agostino. In contrast, retail investors have been pulling their funds out of Bitcoin exchange-traded funds (ETFs), a trend that has caused the ETF market to lose some momentum. D’Agostino pointed out that institutions seem to be positioning themselves for the long term, while retail investors may be missing out on the bigger picture.

In addition to the institutional surge, the launch of Twenty One Capital, a Bitcoin investment firm backed by Tether, Bitfinex, and SoftBank, signals further institutional confidence. The firm, which will begin with over 42,000 BTC, plans to list publicly under the ticker “XXI” following a merger with Cantor Equity Partners, a $200 million SPAC.

D’Agostino outlined three key reasons why institutions are turning to Bitcoin: first, a global trend toward de-dollarization, as nations and corporations reduce their reliance on the U.S. dollar; second, Bitcoin’s growing detachment from tech stocks, which has made it a more attractive option for investors; and third, Bitcoin’s role as a hedge against inflation, with growing acceptance from commodities traders.

“Bitcoin is now firmly positioned as a scarce, immutable asset akin to gold,” said D’Agostino. “It’s increasingly seen as a safe haven in times of economic uncertainty.”

While Bitcoin has been on a strong upward trajectory, altcoins like Ether (ETH), Solana (SOL), and Cardano (ADA) have struggled. The CoinDesk 20 index, which tracks the top digital assets, has fallen by 3% over the past month, while Bitcoin has surged by 7%.

This growing institutional interest has also led to a resurgence in Bitcoin ETF flows, with data from SoSoValue showing $900 million in inflows over two consecutive days this week. Despite this, the month has seen several instances of net outflows from Bitcoin ETFs, totaling $1.21 billion as of April 23.

About The Author

ctleditor

See author's posts