Bernstein Says Bitcoin Store-of-Value Thesis Holds Despite Weaker Flows

Bitcoin has drawn weaker capital flows this year, but the case for the token as a long-term store of value remains intact, Bernstein said. With retail investors focused on artificial intelligence stocks, the Bitcoin market is increasingly being driven by institutions and corporate treasury strategies.

Bernstein analysts wrote in a client note that Bitcoin’s capital-allocation cycle has slowed this year and retail momentum has faded, The Block reported on June 8. Even so, the analysts said the long-term store-of-value narrative has not changed.

Net inflows into Bitcoin exchange-traded funds and corporate treasury companies totaled about $12 billion this year, Bernstein said. That is sharply lower than roughly $60 billion last year.

Spot Bitcoin ETFs have recorded $2.6 billion of net outflows so far this year. Bernstein said that implies this year’s net inflows have come mainly from purchases by Bitcoin treasury companies.

“In a market completely dominated by retail investors’ obsession with AI, $2.6 billion of net outflows this year is almost encouraging,” Bernstein analyst Gautam Chhugani said. Bitcoin’s relatively dull performance in this cycle is not something to criticize and does not undermine the long-term store-of-value thesis, he added.

Bitcoin rose about 1% over the past 24 hours to trade above $63,000. It remains about 50% below its record high of $126,000 reached in October 2025.

The Block said Bitcoin fell to its lowest level in more than two months last week. Net outflows from spot Bitcoin ETFs, Strategy’s sale of $2.5 million of Bitcoin, and macro uncertainty tied to rising tensions between the US and Iran weighed on prices.

Bernstein said Bitcoin’s institutional investor base has broadened to include wealth-management platforms, broker-dealers, private banks, pension funds and sovereign wealth funds. Glassnode data cited in the report showed that 61% of circulating Bitcoin supply has not moved in more than a year.

Accumulation by corporate treasury companies is a key factor offsetting liquidation pressure from ETFs, Bernstein said. The firm said Strategy raised $7.5 billion this year through its STRC preferred stock product and bought about 100,000 Bitcoin.

Bernstein also said Strategy’s $53 billion in Bitcoin holdings exceeds its annual cash dividend obligation on STRC of $1.2 billion by more than 30 times. That suggests the preferred dividend burden is not large enough to immediately undermine its Bitcoin-holding strategy.

Bernstein said retail investors’ shift toward AI-related stocks may have made Bitcoin’s market structure healthier in this cycle. Ownership is becoming more dispersed across corporate treasury companies, wealth-management platforms, pension funds and sovereign wealth funds.

Still, capital flows directly into Bitcoin have slowed. Bernstein said some capital is moving into digital-asset infrastructure tied to the tokenization of real-world assets, or RWAs. It added that platforms such as Hyperliquid are seeing rising trading volumes in tokenized stocks and commodities.

Markets are now watching whether Bitcoin ETF flows will return to net inflows. Bernstein said that while Bitcoin has been relatively dull this year, the long-term case for it as a store-of-value asset remains intact given broader institutional adoption and a growing base of long-term holders.