John D’Agostino, Head of Strategy at Coinbase Institutional, appeared on CNBC’s Squawk Box to discuss the factors behind Bitcoin’s recent surge past $105,000 and shed light on an overlooked aspect of Bitcoin ETFs. D’Agostino, who spoke with co-host Andrew Sorkin, emphasized that Bitcoin is neither a “gold” asset nor a “Nasdaq” tech stock, offering a unique position in the market.
Sorkin kicked off the conversation by pointing out Bitcoin’s impressive rise from below $74,000 last fall to a January peak of $109,100, followed by recent fluctuations below $90,000 before reclaiming the $100,000 mark. Bitcoin has gained over 70% in the past year. He then asked D’Agostino how investors should conceptualize Bitcoin – whether it’s more like a tech stock or a store of value like gold.
D’Agostino replied that Bitcoin does not fit neatly into either category. Reflecting on his last appearance on CNBC in April, he noted that Bitcoin ETF inflows had been sluggish, partly due to political uncertainties like tariff announcements. However, shortly after that visit, Bitcoin ETF inflows surged, with approximately $5.5 billion entering Bitcoin ETFs in the following weeks, surpassing gold ETFs.
D’Agostino attributed Bitcoin’s outperformance compared to gold to three factors: its connection to tech stocks, its potential as an inflation hedge, and the idea of a “catch-up” trade to gold. Now, with the continued massive inflows into Bitcoin ETFs, he identified a fourth crucial characteristic of Bitcoin—scarcity. Unlike gold, Bitcoin miners face limitations on the supply they can produce, making it more susceptible to price increases driven by rising demand.
A significant nuance that D’Agostino pointed out in the conversation was an often-overlooked feature of Bitcoin ETFs: financial brokers are currently prohibited from recommending these ETFs to their clients. He predicted that this restriction would eventually be lifted, which he believes would lead to a massive increase in Bitcoin ETF inflows, further solidifying Bitcoin’s place in the investment landscape.
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