According to the Wall Street brokerage, Bitcoin’s recent weakness is not being driven by concerns over quantum computing or blockchain security. Instead, analysts argue that the primary factor is weaker capital inflows. Bitcoin treasury companies and spot ETFs have attracted around $12 billion in inflows this year, a sharp decline from the $60 billion recorded in 2025. Spot Bitcoin ETFs have also experienced approximately $2.6 billion in net outflows.
Bernstein analysts noted that retail investors have been directing capital toward AI-focused investments, as well as tokenized equity and commodity products, which have been among the strongest-performing sectors this year. However, they described the ETF outflows as relatively modest given the sector’s $75 billion asset base, viewing this as a positive signal for the market.
Led by analyst Gautam Chhugani, the Bernstein team argued that Bitcoin ownership is now far more diversified than in previous cycles. With participation from ETFs, corporate treasuries, wealth-management platforms, pension funds, and sovereign investors, the market structure has become more resilient. The firm maintains that Bitcoin’s long-term store-of-value thesis remains intact despite its lack of excitement compared to AI-driven investments.
