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Institutions have not been fazed by Bitcoin’s recent sell-off, Coinbase (NASDAQ:COIN) Head of Institutional Strategy John D’Agostino says.
D’Agostino on told CNBC on Tuesday that he recently surveyed 130 institutional investors across Hong Kong and the United Arab Emirates, who said their thesis of Bitcoin as a store of value has not changed despite recent price volatility.
“I asked them, has the price volatility changed your thesis?” he said. “Not a single one raised their hands.”
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D’Agostino said these investors were leveraging their natural resources to buy and hold Bitcoin. For the Middle East, it is fossil fuel sales, and for China, it is trade surpluses, he said.
He also said they were “investing very, very heavily” in adopting blockchain technology for infrastructure.
These institutional investors are not necessarily stepping in to buy the dip but rather have been investing consistently over the past five to seven years, D’Agostino told CNBC.
“Net buying exceeds net selling on our platform,” he said. “So that’s a good sign.”
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D’Agostino’s remarks come as Bitcoin has fallen as low as $60,000 this year. The asset was most recently trading at $66,500, down 24% so far this year and nearly 50% from its record price of $126,000 in October.
D’Agostino framed the recent decline as par for the course for the asset, urging market observers to zoom out as is commonly said on “crypto Twitter.”
“It’s a setup we’ve seen multiple times before,” he told CNBC. “Go back 10 years, the returns are just silly, right? If you held the S&P for 10 years, you made about two and a half times your money. If you’ve held gold for 10 years, you made about three times your money. If you’ve held Bitcoin, you’ve made about 11 to 15,000 times your money.”
Read More: Bitcoin Decline Hasn’t Changed The Thesis For Institutional Investors,
