Bitcoin’s Strength in Volatile Markets Reflects Institutional Ownership Shift: Bernstein

Bitcoin’s recent resilience during geopolitical uncertainty is being driven by a structural shift in ownership toward institutions, according to Bernstein.

The cryptocurrency rose about 7% over the past week, while ether (ETH) gained roughly 9%, outperforming gold and global equities as markets reacted to escalating tensions. Analysts say the move underscores the growing role of institutional capital in shaping crypto price action.

“We think the combination of ETFs and Strategy’s treasury strategy has fundamentally altered bitcoin’s ownership profile,” analysts led by Gautam Chhugani wrote.

Strategy—described in the report as a “buyer of last resort”—has continued to accumulate aggressively. The company recently added about $1.57 billion worth of BTC, extending its weekly purchase streak.

Under Executive Chairman Michael Saylor, the firm acquired 22,337 bitcoin at an average price of $70,194, bringing total holdings to 761,068 BTC with an average cost of $75,696 per coin.

To fund its purchases, Strategy has expanded its use of preferred equity through its STRC program, which offers returns tied to the Secured Overnight Financing Rate (SOFR), providing liquidity for continued bitcoin buying via share issuance.

Meanwhile, spot bitcoin ETFs have drawn approximately $2.1 billion in inflows over the past three weeks, lifting ETF ownership to about 6.1% of total supply. Bernstein noted increasing participation from institutional allocators such as wealth managers, pension funds, and sovereign investors.

Although retail investors have been net sellers, long-term holders remain firmly in control, with around 60% of bitcoin supply unmoved for more than a year—highlighting its role as a long-term store of value.

Bitcoin’s outperformance during recent geopolitical stress has also revived the “digital gold” narrative. While it lagged gold for much of the past year, recent gains suggest it may be starting to act as a hedge during periods of global instability, though views remain mixed.

For equity investors, Bernstein added that Strategy (MSTR) offers leveraged exposure to bitcoin and is currently trading at roughly a 14% discount to its bitcoin net asset value.

At the time of writing, bitcoin was trading near $73,900, up 4.4% on the day, while ether was up 8.4% at around $2,273.