Bitcoin The recent strength during geopolitical uncertainty reflects a fundamental shift in the asset’s ownership structure, according to Wall Street trader Bernstein.
The cryptocurrency rose about 7% last week, and ether (ETH) gained about 9%, outperforming gold and global stock indices as markets reacted to the escalating global conflict. The broker said the performance highlights how institutional ownership is reshaping the market.
“We believe the combination of Strategy’s treasury model and ETFs has transformed the ownership structure of bitcoin,” analysts led by Gautam Chhugani said in Monday’s report.
Strategy, which analysts described as a “bitcoin central bank of last resort,” has continued buying throughout the downturn. The company extended its weekly buying streak, acquiring around $1.57 billion worth of BTC, according to a filing on Monday.
The company, led by CEO Michael Saylor, purchased 22,337 bitcoins at an average price of $70,194 each, bringing its total holdings to 761,068 BTC purchased at an average cost of $75,696 per coin.
Strategy has also expanded its preferred equity financing strategy through the STRC product, which offers investors high-yield income linked to the secured overnight financing rate (SOFR) and has generated increasing trading volumes. The additional liquidity helps fund more bitcoin purchases through market offerings.
Meanwhile, spot bitcoin exchange-traded funds (ETFs) have attracted around $2.1 billion in inflows over the past three weeks, bringing ETF ownership to about 6.1% of the total bitcoin supply. Analysts said these vehicles are increasingly receiving allocations from wealth managers, pension funds and sovereign investors.
Retail investors have been net sellers in recent months, but long-term holders remain dominant. About 60% of the bitcoin supply has not moved for more than a year, a sign that many investors continue to treat the asset as a long-term store of value, according to the report.
Bitcoin’s recent outperformance during geopolitical stress has also reignited debate over its role as “digital gold.” While the token lagged the precious metal for much of last year, its gains during the latest bout of global uncertainty have led some analysts to argue that the asset is starting to behave more like a geopolitical hedge, although the comparison remains controversial.
For stock investors, Bernstein added that the (MSTR) strategy remains a high-beta way to gain exposure to the upside of bitcoin, and is currently trading at a discount of around 14% to its bitcoin net asset value on a basic stock basis.
The largest cryptocurrency was trading 4.4% higher, around $73,900 at press time. Ether, the second-largest cryptocurrency by market cap, rose 8.4% to $2,273.
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