Large institutional investors, including sovereign wealth funds and major insurance pools, added Bitcoin (BTC) exposure throughout April as part of broader portfolio strategies tied to macroeconomic shifts, according to Coinbase institutional head of strategy John D’Agostino.
During an interview on CNBC’s Squawk Box, D’Agostino highlighted how these traditionally conservative capital allocators are approaching Bitcoin amid evolving global monetary conditions.
According to the Coinbase exec, three interlinked factors drove institutional flows into Bitcoin during April. These factors include de-dollarization trends, a reassessment of Bitcoin’s identity relative to technology equities, and its role as an alternative inflation hedge alongside gold.
D’Agostino said the April inflows came from “long-duration capital” like sovereigns and insurers rather than retail or speculative actors.
De-dollarization and portfolio realignment
D’Agostino noted that the April 2 US tariff announcement by President Donald Trump’s administration prompted renewed discussion among global allocators about the durability of the US dollar as the dominant reserve currency.
He said some sovereign wealth funds reassessed their strategy of holding US dollars via gold or other reserve assets and instead opted to increase direct exposure to Bitcoin, purchasing it in their native fiat currencies.
These entities, anticipating reduced dollar-denominated global trade and slower US economic growth, saw Bitcoin as a non-sovereign store of value that could serve as a hedge in scenarios where demand for US assets declines.
This mirrors broader de-dollarization themes that have gained traction among certain emerging market policymakers and reserve managers in recent years.
Retail outflows, institutional inflows
While Bitcoin exchange-traded funds (ETFs) flows remained net negative through much of April, before $1.3 billion in inflows between April 21 and 22, institutional direct purchases continued.
D’Agostino explained that Coinbase observed persistent net buying activity from patient capital allocators despite this movement. He emphasized that ETF activity does not fully capture institutional behavior, particularly among sovereign buyers who do not publicly report positions.
Additionally, D’Agostino said long-term holders acquiring spot Bitcoin during market retreat periods explain the decoupling between ETF outflows and price strength. Despite retail net selling, this divergence resulted in a 13% monthly gain for Bitcoin.
Inflation hedge and gold alternative
Beyond geopolitical considerations, D’Agostino said institutional buyers increasingly view Bitcoin as an inflation hedge.
As BTC decouples from leveraged tech trades that previously distorted its behavior, its core attributes, such as fixed supply, immutability, non-sovereign control, and portability, are becoming central to its renewed investment thesis.
He noted that Bitcoin often appears alongside gold and real estate in the top five assets of multi-year inflation hedge models developed by global macro traders.
D’Agostino concluded that while sovereign buyers are unlikely to disclose exact allocations, the continued presence of long-duration capital in April’s price action suggests increasing institutional conviction in Bitcoin’s role as a strategic reserve asset.
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