James Butterfill, Head of Research at CoinShares, believes Bitcoin is increasingly viewed as a viable reserve asset—not just by corporations, but also by governments. As global macro pressures intensify and traditional financial systems show cracks, Bitcoin’s fundamental traits are attracting strategic interest.
Bitcoin: Built for Resilience
Butterfill outlines several key reasons behind Bitcoin’s growing appeal:
- Scarcity: With a hard cap of 21 million coins, Bitcoin is resistant to inflationary manipulation—something fiat currencies can’t offer.
- Sovereignty: Unlike gold or fiat held in centralized banks, Bitcoin can’t be frozen or confiscated, making it ideal for sovereign reserves.
- Decentralization: It operates independently of banks, showing relative strength during financial crises.
- Uptime and Security: The Bitcoin network has maintained 99.98% uptime since 2009 and boasts over 900 EH/s in hash rate as of 2025—making it the most secure blockchain in terms of computational power.
These traits, he argues, make Bitcoin a “long-term store of value” capable of withstanding cyber threats and centralized system failures.
Risks to Consider
Despite the optimism, Butterfill points to important caveats. Bitcoin remains volatile—unsurprising for a relatively young asset class. In addition, legal clarity varies across jurisdictions, which can create friction for reserve managers navigating cross-border transfers or reporting obligations.
Capital Inflows Reflect Trust
CoinShares analysts recently noted that capital inflows into spot Bitcoin ETFs remain strong. BlackRock, Bitwise, Grayscale, and ProShares have now recorded ten consecutive weeks of net inflows. Last week alone saw $1.24 billion pour in, pushing total year-to-date inflows above $15.1 billion.
Conclusion
Bitcoin is no longer just a speculative asset—it’s becoming a strategic one. As institutions and governments reevaluate what resilience looks like in an increasingly fractured world, Bitcoin’s design may offer a compelling answer.
However, whether it becomes a core reserve instrument or simply a hedge remains to be seen.
This content is for informational purposes only and does not constitute financial advice or an investment recommendation.
