Markets Daily Crypto Roundup: How Institutional Demand Is Backing Bitcoin Resilience

Released on June 27, 2025 | Hosted by CoinDesk

Introduction

In this insightful episode of Markets Daily Crypto Roundup, CoinDesk delves into the resilience of Bitcoin amidst recent geopolitical tensions. The discussion centers around the stabilizing factors behind Bitcoin's steady performance, particularly highlighting the surge in institutional demand and the impact of Exchange-Traded Funds (ETFs).

Guest Introduction

[00:36] Host: "Let's welcome our next guest for this special edition of Markets Daily, Federico Brokati, Head of US Business at 21Shares."

Federico Brokati: "Hi. Nice to be with you both."

Bitcoin's Stability Amid Geopolitical Tensions

[00:53] Host: "Bitcoin is currently around $107,000, remaining steady despite recent geopolitical tensions. Federico, how do you perceive Bitcoin's performance in this context?"

Federico Brokati:

"This is a sign of the tremendous maturity that we're seeing from Bitcoin in the market today. [01:14]"

Federico emphasizes that Bitcoin is evolving into a more mature and uncorrelated macro asset. Unlike previous instances where geopolitical events would typically exert downward pressure on Bitcoin’s price over a short span of three to seven days, current trends show Bitcoin maintaining its $100k to $110k range. This resilience is attributed to two main factors:

1. Institutional Buyers: The influx of buy-and-hold investors who absorb liquidity without reacting to short-term market events.
2. Regulatory Support: Increased confidence from Washington, D.C., and broader regulatory backing for crypto markets enhance investor trust in Bitcoin as the leading digital asset.

Surprising Inflows and ETF Dynamics

[02:00] Co-Host: "We've observed several days of inflows, primarily in Bitcoin within the United States, yet Bitcoin's trading range has remained relatively flat for 50 straight days. Is this inflow from new institutional money, or perhaps related to futures and options trading?"

Federico Brokati:

"Bitcoin ETF flows from the US alone this year are between $12 to $13 billion in net new assets. Adding 2024 figures, we’re approaching $50 billion in organic flows into Bitcoin. [02:58]"

Federico highlights the significant role of Bitcoin ETFs in driving institutional investment. Unlike actively traded assets, ETFs buy and hold the underlying asset, directly increasing participation in the Bitcoin market. Despite Bitcoin not breaking its recent highs, year-to-date growth remains robust, outperforming traditional risk assets like the S&P 500 and NASDAQ indices.

Corporate Adoption and Price Stability

[03:53] Host: "Interestingly, more corporate treasuries are adding Bitcoin to their balance sheets. Better Planet has even surpassed Tesla as the fifth largest corporate holder of Bitcoin. Yet, the price remains steady."

Co-Host: "This stability indicates that there are steady buyers offsetting sellers. However, without significant momentum, Bitcoin hasn't broken through its all-time highs."

Federico Brokati:

"With nearly 50 billion inflows into ETFs and an increasing percentage of Bitcoin held by ETFs and corporate treasuries, we expect long-term holders to drive Bitcoin towards new heights. [10:06]"

The steady acquisition by corporate treasuries and ETF holders underscores a foundational support for Bitcoin's price, contributing to its resilience without necessarily sparking immediate price surges.

ETF Approval and Market Impact

[08:11] Host: "Federico, you co-signed a letter with Vaneck and Canary Capital urging the SEC to reinstate the first-to-file principle for ETF approvals. Can you elaborate on the significance of this principle for ETF purchasers?"

Federico Brokati:

"Reinstating the first-to-file principle will encourage innovation and reward issuers who bring new, creative products to the market first. This fosters competition and benefits investors through a wider array of ETF options. [08:34]"

Federico argues that the first-to-file principle is crucial for maintaining a dynamic and innovative ETF market. By ensuring that the first applicants receive priority, the industry can continue to introduce diverse and impactful investment products, ultimately benefiting investors through enhanced choices and potentially better performance.

Future Prospects and Market Education

[06:17] Host: "When do you anticipate newcomers joining the Bitcoin market, and what will catalyze their entry if they're currently on the sidelines?"

Federico Brokati:

"The catalyst for newcomers will be the continued entry of professional investors and advisors who allocate assets on behalf of clients. The uncorrelated returns of Bitcoin compared to other risk assets are attracting these fiduciaries to include Bitcoin in their clients' portfolios. [06:25]"

Federico envisions that as Bitcoin ETFs become more established and trusted, a broader base of investors, including those less familiar with crypto, will be encouraged to invest. Education on the underlying assets and their use cases will be pivotal in attracting these new entrants.

Long-Term Outlook and Market Maturation

[09:39] Co-Host: "Do you think that with the broader ownership base and physical assets locked in ETFs, volatility in Bitcoin and alternative cryptocurrencies will continue to decrease?"

Federico Brokati:

"Absolutely. With substantial inflows into ETFs and increasing Bitcoin holdings by corporate treasuries, we anticipate not only surpassing previous high numbers of long-term Bitcoin holders but also achieving significant market cap growth. [09:56]"

The accumulation of long-term holders, both institutional and corporate, is expected to stabilize Bitcoin’s price further and reduce volatility. As these entities commit to sustained investments, the market will benefit from increased liquidity and reduced speculative trading.

Conclusion

[10:31] Host: "Federico, thank you for joining us today. We appreciate your insights."

Federico Brokati: "Thank you. Thanks for having me."

The episode concludes with a reinforced understanding of Bitcoin's resilience, underpinned by institutional demand and strategic ETF growth. Federico Brokati’s expert analysis provides listeners with a comprehensive view of the factors contributing to Bitcoin’s stable performance and the promising future of institutional investments in the cryptocurrency market.

Notable Quotes:

• Federico Brokati [01:14]:

  "This is a sign of the tremendous maturity that we're seeing from Bitcoin in the market today."

• Federico Brokati [02:58]:

  "Bitcoin ETF flows from the US alone this year are between $12 to $13 billion in net new assets."

• Federico Brokati [08:34]:

  "Reinstating the first-to-file principle will encourage innovation and reward issuers who bring new, creative products to the market first."

• Federico Brokati [09:56]:

  "With substantial inflows into ETFs and increasing Bitcoin holdings by corporate treasuries, we anticipate not only surpassing previous high numbers of long-term Bitcoin holders but also achieving significant market cap growth."

This comprehensive summary encapsulates the key discussions and insights from the episode, providing valuable information for listeners and those unfamiliar with the content.