Bitcoin outpaces gold and equities during global turmoil as ETFs and Strategy continue to accumulate.

Institutional Demand Drives Bitcoin Strength Amid Global Turmoil: Bernstein

Bitcoin’s resilience during the latest wave of geopolitical uncertainty reflects a deeper shift in its ownership structure, according to a new report from Bernstein.

The largest cryptocurrency rose roughly 7% last week, while ether (ETH) gained about 9%, outperforming both gold and global equities as markets reacted to escalating tensions. Analysts say this divergence underscores the growing influence of institutional investors in the crypto market.

“We believe the combination of Strategy’s treasury approach and the rise of ETFs has fundamentally reshaped bitcoin’s ownership,” analysts led by Gautam Chhugani wrote in a Monday note.

Strategy—described in the report as a “bitcoin central bank of last resort”—has continued accumulating aggressively despite market volatility. The firm recently added about $1.57 billion worth of BTC, extending its weekly buying streak.

Led by Executive Chairman Michael Saylor, the company purchased 22,337 bitcoin at an average price of $70,194, bringing total holdings to 761,068 BTC with an average cost basis of $75,696 per coin.

Strategy has also expanded its use of preferred equity financing through its STRC product, which offers yield tied to the Secured Overnight Financing Rate (SOFR). This structure has helped generate liquidity to fund continued bitcoin purchases via at-the-market share sales.

At the same time, spot bitcoin ETFs have attracted around $2.1 billion in inflows over the past three weeks, pushing ETF-held supply to roughly 6.1% of total bitcoin. According to Bernstein, these products are increasingly drawing allocations from wealth managers, pension funds, and sovereign investors.

While retail investors have been net sellers in recent months, long-term holders remain dominant. Roughly 60% of bitcoin supply has not moved in over a year, signaling strong conviction among long-term investors.

Bitcoin’s outperformance during geopolitical stress has also reignited the “digital gold” narrative. Although it lagged the precious metal for much of the past year, its recent gains have led some analysts to argue it is beginning to function as a geopolitical hedge—though that view remains debated.

For equity investors, Bernstein noted that Strategy (MSTR) continues to offer leveraged exposure to bitcoin, currently trading at about a 14% discount to its underlying 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.