Bitcoin Outperformance Signals Shift to Institutional Ownership: Bernstein
Bitcoin’s ability to outperform traditional assets during the latest wave of global uncertainty points to a changing ownership structure increasingly dominated by institutions, according to Bernstein.
The cryptocurrency gained roughly 7% over the past week, while ether (ETH) rose about 9%, beating gold and global equity markets as geopolitical tensions intensified. Analysts say the divergence highlights how institutional flows are reshaping the market.
“We believe ETFs alongside Strategy’s treasury model have fundamentally transformed bitcoin ownership,” analysts led by Gautam Chhugani wrote.
Strategy, described as a “buyer of last resort,” has continued to accumulate bitcoin through market volatility. The company recently purchased approximately $1.57 billion worth of BTC, extending its streak of weekly acquisitions.
Led by Executive Chairman Michael Saylor, the firm acquired 22,337 bitcoin at an average price of $70,194 per coin, bringing total holdings to 761,068 BTC at an average cost basis of $75,696.
The company has also leaned on its STRC preferred equity program, offering yield linked to the Secured Overnight Financing Rate (SOFR), to generate capital for continued bitcoin purchases through share issuance.
At the same time, spot bitcoin ETFs have seen about $2.1 billion in inflows over the past three weeks, lifting ETF ownership to roughly 6.1% of total supply. Bernstein noted that these products are increasingly attracting allocations from wealth managers, pension funds, and sovereign investors.
Retail investors, by contrast, have been net sellers in recent months, though long-term holders remain dominant. Around 60% of bitcoin supply has not moved for more than a year, reflecting strong conviction among holders.
Bitcoin’s recent gains during geopolitical stress have also revived its “digital gold” narrative. While it lagged the precious metal for much of the past year, its latest performance suggests it may be starting to act as a hedge against global instability, though debate continues.
For equity investors, Bernstein said Strategy (MSTR) remains a high-beta proxy for bitcoin exposure and is currently trading at about a 14% discount to its underlying net asset value.
At last check, bitcoin was trading near $73,900, up 4.4% on the day, while ether was up 8.4% at around $2,273.
