Sovereign Wealth Funds Accumulating Bitcoin While Retail Exits

Sovereign wealth funds and other large institutions were net buyers of Bitcoin throughout April 2025, even as retail traders appeared to be reducing their exposure through exchange-traded funds (ETFs) and spot markets, according to John D’Agostino, the head of strategy at Coinbase Institutional.

D’Agostino made these remarks during an interview on CNBC on Wednesday.

Drawing a parallel between Bitcoin and gold, D’Agostino highlighted that many institutional investors are viewing Bitcoin as a crucial hedge against currency inflation and broader macroeconomic uncertainties. He emphasized Bitcoin's fundamental characteristics that resonate with this safe-haven narrative.

"Bitcoin is trading on its core characteristics, which again are similar to gold," D’Agostino explained. "You've got scarcity, immutability, and non-sovereign asset portability. So it's trading the way people who believe in Bitcoin would like it to trade."

He further elaborated on this comparison, stating, "When you do the work, there's a very short list of assets that mirror the characteristics of gold. Bitcoin is on that shortlist."

According to SoSoValue data, Bitcoin ETFs saw significant inflows of $913 million on Monday, accompanied by $39 million into Ether ETFs, nearly reaching a combined $1 billion – the strongest single-day inflow in months. This surge suggests the potential start of a new accumulation cycle as institutions rebuild their digital asset allocations following weeks of outflows, even amidst positive price action.

The renewed institutional interest in digital assets coincides with a significant weakening of the US dollar. On Monday, the dollar tumbled to its lowest level in three years against a basket of currencies, reaching 97.923, its weakest point since March 2022. The dollar also fell to a decade-low against the Swiss franc, while the euro broke above $1.15, Reuters reported . This dollar weakness, attributed to waning investor confidence in the US economy, may be further incentivizing institutions to seek alternative stores of value like Bitcoin.

Despite a slight dip of 0.77% in the past 24 hours, Bitcoin currently trades at $92,712, marking a substantial 10.16% gain over the last seven days, per Coinmarketcap data. This price resilience, coupled with the strong institutional inflows, reinforces D’Agostino's perspective that sophisticated investors are increasingly recognizing Bitcoin's fundamental value in the current macroeconomic climate.