On March 16, analysts at research and brokerage firm Bernstein said in a report that Bitcoin is developing a more resilient ownership structure as institutional funds flow in through ETFs and corporate treasury strategies reshape the market.
In a report to clients on Monday, a team of analysts led by Gautam Chhugani noted that Bitcoin has performed strongly amid recent Middle East conflicts, outperforming traditional assets such as gold and global stock indices.
Analysts believe that the maturation of spot Bitcoin ETFs and demand from large corporate treasury buyers have changed Bitcoin's investor base, reducing reliance on speculative retail capital and strengthening its long-term prospects.
The key force driving this shift is Strategy. Bernstein describes the company as acting as a "lender of last resort" for Bitcoin through its aggressive hoarding model.
Analysts say Strategy has been consistently buying during recent market volatility, adding 66,231 BTC so far this year at an average cost of nearly $85,000. According to its 8-K filing on Monday, Strategy currently holds over 761,000 BTC, worth approximately $56 billion.
Strategy has also expanded its funding structures related to its Bitcoin strategy, including preferred securities designed to attract yield-oriented investors. The report states that the company's STRC product pays an 11.5% dividend, and weekly trading volume has climbed to over $2 billion. Funds raised through these instruments have been used to finance additional Bitcoin purchases.
Meanwhile, institutional demand is accelerating through Bitcoin ETFs. Analysts estimate that ETFs have attracted approximately $2.1 billion in inflows over the past three weeks, bringing year-to-date net outflows down to about $460 million, while total ETF assets are around $92 billion. According to Bernstein's analysis, these funds currently control approximately 6.1% of the total Bitcoin supply.
The report also highlights the continued presence of long-term holders as another stabilizing force in the market. Bitcoin that hasn't moved in over a year currently accounts for approximately 60% of the circulating supply, indicating that a significant portion of investors primarily view Bitcoin as a store of value.
Analysts say that, overall, these structural changes are strengthening Bitcoin's capital base even after periods of volatility. Currently, institutional instruments, including ETFs, corporate treasuries, and governments, hold approximately 14% of the total supply.
