Sovereign wealth funds invest in $90K Bitcoin as retail traders exit

Sovereign wealth funds and institutional investors increased their Bitcoin (CRYPTO:BTC) holdings in April 2025, while retail traders reduced exposure through exchange-traded funds (ETFs) and spot markets, according to John D’Agostino, head of strategy at Coinbase Institutional.

Speaking on CNBC, D’Agostino compared Bitcoin to gold, highlighting its scarcity, immutability, and non-sovereign portability as core characteristics that attract institutional buyers.

“Bitcoin is trading on its core characteristics, which again are similar to gold. 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 said.

“When you do the work, there’s a very short list of assets that mirror the characteristics of gold. Bitcoin is on that shortlist,” D’Agostino added.

Governments and financial institutions are increasingly adopting Bitcoin as a hedge against currency inflation and macroeconomic uncertainty.

Countries such as El Salvador and Bhutan have incorporated Bitcoin into their national reserves and actively purchase the cryptocurrency to protect purchasing power.

Several municipalities and state governments have proposed legislation to accumulate Bitcoin for treasury protection against fiat currency depreciation.

Michael Saylor and his company Strategy (formerly MicroStrategy) popularised the corporate Bitcoin treasury model, which has been adopted by firms including MARA, MetaPlanet, and Semler Scientific.

Saylor transformed his business software company into a Bitcoin holding entity resembling a BTC hedge fund.

On April 20, Saylor announced that over 13,000 institutions have direct exposure to Strategy, with an estimated 55 million beneficiaries indirectly exposed.

Bitcoin recently surpassed Google in market capitalisation, ranking among the top five global assets, above companies like Amazon and commodities such as silver.

This milestone underscores Bitcoin’s growth as a supply-capped digital asset since its inception in 2009.

According to CoinMarketCap, Bitcoin reclaimed the $90,000 price level in April 2025, reinforcing its narrative as a digital store of value.

At the time of reporting, the Bitcoin (BTC) price was $92,759.25.