- Sovereign wealth funds raised Bitcoin exposure in April as the BTC price surged past $90,000.
- Over 13,000 institutions now hold shares in Strategy, gaining indirect BTC exposure.
- El Salvador and Bhutan continue expanding national Bitcoin reserves amid global inflation.
April 2025 marked a market shift, with sovereign wealth funds and institutional investors applying more capital to Bitcoin (BTC) assets. According to John D’Agostino, the head of Strategy at Coinbase Institutional, institutional investors are purchasing Bitcoin, while retail traders decrease their holdings through ETFS and spot market channels.
During an interview, D’Agostino discussed Bitcoin’s growing attraction to governments and financial institutions. Financial institutions treat cryptocurrency as a protective tool to fight inflation and economic instability. BTC regained momentum in late April when it exceeded $90,000 and demonstrated its role as a “non-correlated” store of value with limited supply.
Institutions Adopt Bitcoin as a Strategic Hedge
According to D’Agostino, the institutional buyer community treats Bitcoin as a contemporary version of precious gold. BTC possesses scarcity, portability, and immutability features, making it a modern equivalent to traditional safe-haven assets. State-level financial managers and sovereign funds adopt Bitcoin to protect their investments when they face continuously rising inflation rates.
The countries of El Salvador, together with Bhutan, maintain national BTC reserves in their treasuries. The laws of these nation-states actively use their budgets to buy BTC to protect their financial assets from declining fiat currencies. Many municipalities across the United States and multiple state governments have enacted legislation to allow their budgets to include BTC holdings within their financial plans.
Corporate and Institutional Exposure Grows
The corporate Bitcoin treasury model came into being through Michael Saylor’s firm, Strategy (formerly known as MicroStrategy) and has gained widespread recognition. Three companies, MARA, MetaPlanet, and Semler Scientific, maintain BTC as their primary treasury investment. By connecting traditional financial systems with digital assets, the model enables more institutions to become involved.
Strategy Saylor disclosed through his company that 13,000 institutional shareholders now own assets that indirectly expose Bitcoin to 55 million beneficiaries. The increasing embrace of BTC as a hedge instrument alongside a portfolio diversification strategy symbolises broad institutional endorsement of its long-term financial value.
The market value of BTC currently exceeds Google’s and ranks among the five most significant assets globally. The recent market valuation announcement shows that institutional and sovereign actors have experienced a substantial change in their perspective on creating a crypto strategy. Due to worldwide uncertainty, public and private institutions continue expanding their interest in BTC as both a store of value and a reserve asset.
