Large institutional investors, including sovereign asset funds and large insurance poles, added exposure to Bitcoin (BTC) in April as part of broader portfolio strategies linked to macro -economic shifts, according to Coinbase Institutional Head of Agostin…
During an interview on CNBC’s Squawk Box, D’Agostino emphasized how these traditional conservative capital allocators Bitcoin approach in the midst of evolving global monetary conditions.
According to the Coinbase Exec, three interconnected factors brought institutional flows in Bitcoin in April. These factors include de-dollarization trends, a reassessment of Bitcoin’s identity in relation to technological shares, and its role as an alternative inflation department alongside gold.
D’Agostino said that the inflow of April came from “long-term capital” such as sovereigns and insurers instead of retail or speculative actors.
De-dollarization and repeat of portfolio
D’Agostino noted that the US rate announcement by President Donald Trump’s government has led to a renewed discussion among global allocers about the sustainability of the US dollar as the dominant reserve currency.
He said that some sovereign wealth funds have re -assessed their strategy to keep American dollars through gold or other reserve activa and instead chose to increase direct exposure to Bitcoin, to buy it in their native Fiat currencies.
Bitcoin saw these entities, which anticipate reduced dollar-proverded global trade and slower US economic growth, as a non-sovereign value shop that could serve as a cover in scenarios in which the demand for American assets is decreasing.
This reflects broader de-dollarization themes that have received a grip in recent years with certain policy makers of emerging market and reserve managers.
Shop outs, institutional inflow
While Bitcoin exchange-used funds (ETFs) flow net negative remained until much from April, before $ 1.3 billion in inflow between April 21 and 22, institutional direct purchases continued.
D’Agostino explained that, despite this movement, Coinbase observed persistent net -buying activity of patient capital allocators. He emphasized that ETF activity does not catch full institutional behavior, especially among sovereign buyers who do not report positions.
Moreover, D’Agostino said that long-term bitcoin holders acquire periods during market retreat, explaining the decoupling between ETF outflows and price strength. Despite the sale of stores, this divergence resulted in a monthly profit of 13% for Bitcoin.
Inflation Hedge and Gold Alternative
In addition to geopolitical considerations, D’Agostino said that institutional buyers are increasingly considering an inflation hedge.
While BTC disconnects from leverage trade that distorted its behavior, the core characteristics, such as fixed delivery, immutability, non-sovereign control and portability, become central in the renewed investment thesis.
He noted that Bitcoin often appears in addition to gold and real estate in the top five assets of multi-year inflation models developed by global macro traders.
D’Agostino concluded that, although it is unlikely that sovereign buyers make exact allocations public, the continuous presence of long -term capital in the price action of April suggests that an increasing institutional conviction in the role of Bitcoin is strategically reserve resistant.
