In a shift highlighting the diverging behaviour between major investors and retail traders, sovereign wealth funds and institutional players significantly ramped up their Bitcoin (BTC) accumulation in April 2025, even as retail interest appeared to wane, according to John D’Agostino, head of the strategy at Coinbase Institutional.
In a recent CNBC interview, D’Agostino emphasized that Bitcoin is now increasingly viewed through a macroeconomic lens, with institutions purchasing the asset as a strategic hedge against inflation and global financial instability. He likened Bitcoin’s trading behaviour to gold, stating,
“Bitcoin is now trading on its core characteristics: scarcity, immutability, and the ability to move across borders without sovereign control.”
“There’s a very short list of assets that mirror the characteristics of gold—Bitcoin is on that list,”
he added.
As inflationary pressures and geopolitical uncertainties escalate globally, governments and financial institutions turn to Bitcoin to safeguard their treasuries. Countries like El Salvador and Bhutan have already adopted Bitcoin as part of their national reserves, reinforcing their long-term belief in the cryptocurrency’s ability to preserve purchasing power.
The wave of institutional adoption is not limited to national governments. Many U.S. municipalities and state governments have also proposed Bitcoin-friendly legislation incorporating BTC into their fiscal strategy to combat fiat currency depreciation.
Notably, Binance has begun advising nations on crypto strategies and reserve management. Speaking to the Financial Times, CEO Richard Teng disclosed that the exchange had transitioned from facing criminal charges in 2023 to now playing a strategic advisory role for sovereign entities.
According to Teng, Binance had been approached by multiple governments and sovereign wealth funds seeking guidance on building national Bitcoin reserves and crafting regulatory frameworks for digital assets. The exchange, he said, was actively collaborating with these entities to help shape comprehensive policies tailored to the evolving crypto landscape.
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