Coinbase Chief Strategy Officer Discussed the Recent Bitcoin Rally: "Even Financial Advisors Haven't Stepped In Yet"

Bitcoin has managed to stay above the $100,000 level, surpassing a historic threshold, and briefly reached $106,000. This rise of over 70% in the past year for the largest cryptocurrency has further increased the interest of investors and institutions.

Coinbase Institutional Strategy Head John D’Agostino joined CNBC’s Squawk Box program to evaluate recent developments. D’Agostino stated that Bitcoin should not be assessed like technology stocks and said, "It is more appropriate to view Bitcoin as a store of value with rarity, similar to gold."

D’Agostino stated that investor interest in spot Bitcoin ETFs has seen a significant rise in recent weeks and that there has been an influx of over 5.5 billion dollars into these products. Noting that Coinbase provides custodial services for most of these ETFs, D’Agostino mentioned that the vast majority of incoming funds came through ETFs rather than direct Bitcoin purchases.

Another striking point is that these ETFs have received such great interest without being actively recommended by financial advisors. D'Agostino stated, "It is extraordinary that this level has been reached without sales teams being allowed to recommend these products to their clients. When this changes, the impact could be much greater."

Evaluating cryptocurrencies other than Bitcoin, D'Agostino described most of the coins outside the top 20 crypto assets as a kind of "venture capital pool." He stated that while some of these assets achieve great success, many of them could fail, and therefore investors should shape their portfolios accordingly.

D'Agostino, who also touched on the issue of regulations regarding cryptocurrencies, argued that the United States needs clearer and more comprehensive legal frameworks. "More laws, clearer rules, and enforceable regulations are in everyone's interest," he said.

D'Agostino, who also touched on the ethical discussions regarding the cryptocurrency trading by members of the U.S. Congress, stated that all market participants should be subject to the same rules. He said, "Whether it's stocks or Bitcoin; insider trading must be prevented."