Institutional Money Fuels Bitcoin Rally as Billions Pour in

Bitcoin's recent rally has significant institutional backing, claims Devere Group CEO Nigel Green. He points to 'billions' flowing into regulated bitcoin products each week as evidence of a shift toward longer-term ownership.

The influx of capital is largely driven by the introduction of U.S. spot bitcoin exchange-traded funds (ETFs), which have attracted $433 million in net inflows on Sept. 18, following $159.5 million the previous session. However, these purchases only narrowly offset withdrawals of $746.3 million on Sept. 15 and 16.

Green contrasts this with rising public debt and competing demands facing central banks as they seek to contain inflation while supporting economic activity. He notes that Bitcoin's maximum supply of 21 million coins creates a predetermined issuance constraint, which sets it apart from interest-bearing assets whose returns increase with higher interest rates.