Despite spot Bitcoin exchange-traded funds (ETFs) recording $2.6 billion in net outflows so far in 2026, analysts at Bernstein maintain that Bitcoin's long-term appeal as a store-of-value asset remains robust. In a report led by analyst Gautam Chhugani, the firm contextualizes the outflows within a broader market rotation toward artificial intelligence equities, arguing that the relatively modest withdrawals actually signal underlying strength.
The outflows from spot Bitcoin ETFs contrast sharply with the approximately $60 billion in inflows seen in 2025, yet Bernstein highlights that total net inflows—including treasury company purchases—still amount to around $12 billion this year. This implies that corporate accumulators like Strategy (formerly MicroStrategy) have largely offset ETF liquidations. Strategy alone raised $7.5 billion through its STRC preferred product to acquire roughly 100,000 BTC, bringing its total bitcoin position to $53 billion, a stash that covers the STRC’s $1.2 billion annual dividend over 30 times, the analysts noted.
Chhugani emphasized that the lack of exuberant interest in Bitcoin during this cycle is not a weakness. "In a market completely dominated by retail's obsession with AI, mere $2.6 billion outflows YTD are almost encouraging," he wrote. "Bitcoin being boring this cycle should not be held against it and does not take away from the long term 'store of value' thesis." Bitcoin was trading above $63,000 at the time, about 50% below its all-time high of $126,000 set in October 2025.
Supporting this view, Glassnode data shows that 61% of circulating bitcoin supply has not moved for more than a year, indicating a resilient base of long-term holders. Meanwhile, institutional adoption has expanded across wealth management platforms, broker-dealers, private banks, pension funds, and sovereign wealth funds. Bernstein also noted growing capital flows into digital asset infrastructure for real-world asset tokenization, with platforms like Hyperliquid seeing elevated volume in tokenized equities and commodities.
While the AI frenzy may have siphoned retail momentum, the analysts believe Bitcoin now benefits from a healthier market structure of diversified ownership. The report cautions against conflating temporary capital rotation with a structural decline in Bitcoin's value proposition. Bernstein’s note included disclaimers that Gautam Chhugani holds long positions in various cryptocurrencies and that the firm may receive investment banking fees from Strategy.
