Large institutional investors, including sovereign wealth funds and major insurance pools, added Bitcoin (BTC) exposure during April as part of their broader portfolio strategy related to the macroeconomic shift.
In an interview with CNBC’s Squawk Box, D’Agostino highlighted how these traditionally conservative capital allocations approach Bitcoin amid evolving global financial conditions.
Three interlinked factors drove the facility’s flow to Bitcoin in April, according to Coinbase executives. These factors include a trend in deassimilation, a reassessment of Bitcoin’s identity against technological stocks, and its role as an alternative inflation hedge alongside gold.
D’Agostino said the April influx came from “long-term capital” like sovereigns and insurance companies, rather than retailers or speculative actors.
Derailment and portfolio restructuring
D’Agostino noted that the April 2nd US tariff announcement by President Donald Trump’s administration has prompted new debate among global allocators about the durability of the US dollar as the dominant reserve currency.
He said that several sovereign wealth funds have reevaluated their strategy of holding US dollars via gold or other reserve assets, instead opting to increase their direct exposure to Bitcoin and buy in traditional Fiat currency.
These entities predicted a reduction in global trade and a reduction in US economic growth, where the dollar attracted, and viewed Bitcoin as a non-sorbering reservoir that serves as a hedge in scenarios where demand for US assets is reduced.
This reflects a broader deco-theme that has gained traction among policymakers and reserve managers in certain emerging markets in recent years.
Retail outflow, institutional inflow
The Bitcoin Exchange Sales Fund (ETF) flow remained net negative throughout much of April, prior to the $1.3 billion inflow from April 21 to 22, but direct institutional purchases continued.
D’Agostino explained that Coinbase observed sustained net purchasing activity from patient capital allocators despite this move. He emphasized that ETF activities do not fully capture institutional action, particularly among sovereign buyers who have not publicly reported their positions.
Additionally, D’Agostino said long-term holders who acquire spot bitcoin during market retreats explain the separation of ETF spills and price strength. Despite retail online sales, this divergence brought Bitcoin’s monthly profit of 13%.
Inflation hedge and gold alternatives
Beyond geopolitical considerations, D’Agostino said institutional buyers increasingly see Bitcoin as an inflation hedge.
As BTC is isolated from leveraged technology transactions that previously distorted its behavior, core attributes such as fixed supply, immutability, non-sorber control and portability are becoming the center of new investment papers.
He said that Bitcoin often appears alongside gold and real estate in the top five assets of the multi-year inflation hedge model developed by global macro traders.
D’Agostino concluded that sovereign buyers are unlikely to disclose accurate allocations, but the continued presence of long-term capital in price action in April suggests an increase in institutional convictions in the role of Bitcoin as a strategic reserve asset.
