John D’Agostino (Coinbase Institutional): Bitcoin Is Flowing to Institutions
Institutional investors actively accumulate Bitcoin as retail traders exit the market. According to John D’Agostino of Coinbase, this signals a broader transformation of the crypto market and a new role for BTC in the global economy.
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Institutions vs Retail: Who Will Stay in the Market
In April 2025, the composition of Bitcoin market participants significantly shifted, according to John D’Agostino, head of strategy at Coinbase Institutional.
He notes that sovereign wealth funds and other institutional players are steadily increasing their Bitcoin holdings, while retail traders are gradually exiting the space, reducing their exposure in both spot markets and ETFs.
And when D’Agostino weighs in, it’s worth paying attention.
John D’Agostino is a seasoned expert with over two decades of experience in investment banking, financial regulation, and derivatives. He previously held senior roles at the New York Stock Exchange and Morgan Stanley.
He believes the crypto market stands at the cusp of a new evolutionary phase.
D’Agostino has remained consistent in his views. As early as 2022, he stated in an interview that institutional adoption of crypto was progressing much faster than it appeared, and that the approval of a Bitcoin ETF was only a matter of time. A year and a half later, that forecast proved accurate.
Bitcoin as Digital Gold
D’Agostino compares Bitcoin to gold, highlighting its limited supply, immutability, and independence from government control. These attributes, he argues, make BTC an effective hedge against inflation and geopolitical uncertainty.
His view is backed by real-world actions from sovereign wealth funds:
- In 2024, Bhutan accumulated $750 million worth of Bitcoin, using its hydroelectric resources—a striking move for a country with a modest economic profile.
- In February 2025, Abu Dhabi’s sovereign wealth fund, Mubadala Investment Co., acquired 8.2 million shares of the iShares Bitcoin Trust ETF (~$437 million).
- The State of Wisconsin Investment Board (SWIB) bought 6 million shares of the same ETF (~$321 million).
The Rise of Institutional Interest
D’Agostino notes that the increasing involvement of government and corporate players reflects a deepening belief in Bitcoin’s long-term potential.
Today, several countries and companies use BTC as a hedge against financial risk, including:
Michael Saylor, co-founder and executive chairman of Strategy, has been one of the most vocal figures in Bitcoin’s institutional adoption. In a post on X, he revealed that more than 13,000 institutions now have direct or indirect financial exposure to Strategy.
Moreover, in March 2025, U.S. President Donald Trump signed an executive order to establish a Strategic Crypto Reserve. According to John D’Agostino, this move marks a symbolic shift in the government’s stance on digital assets.
Outside the U.S., other jurisdictions are following suit. For example, the Czech National Bank has floated a proposal to allocate up to 5% of its reserves to Bitcoin.
Retail Pullback
Retail participation in crypto markets is thinning, according to John D’Agostino. He cites infrastructure complexity and asset volatility as key reasons why individual investors are shifting toward more predictable instruments like cash or traditional funds.
According to Business Insider, many individual investors are avoiding direct exposure to crypto, opting instead for ETFs or futures contracts to bypass technical challenges and custody risks.
Bitcoin’s New Role and Possible Scenarios Ahead
According to D’Agostino, the rise in institutional participation extends beyond market pricing. It is transforming the fundamental role of cryptocurrency itself.
On April 22, 2025, net inflows into Bitcoin ETFs ($912) surpassed the average daily figure by 500 times. The momentum suggests that this level of interest from major market players is not a one-time event.
Many analysts expect Bitcoin to break above the $200,000 mark by the end of 2025. For D’Agostino, this is more than just a price milestone. It marks a turning point in Bitcoin’s evolution from a speculative asset to a global strategic reserve instrument.
Yes, the rise of institutional adoption does compromise some anonymity and decentralization envisioned by Satoshi, Bitcoin’s mysterious creator. Still, D’Agostino argues that this tradeoff is justified if the alternative is continued instability and marginalization of the technology.
He foresees a future where institutional priorities shape the market. This shift may alter its nature, but it also brings greater stability and global legitimacy.
However, his view conflicts with Larry Fink, who believes everyone, from taxi drivers to homemakers, should access direct investment opportunities.
For more on Fink’s perspective, see our deep dive into his 2025 investor letter.
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