WisdomTree CEO Jonathan Steinberg rejected the “digital gold” narrative.
Steinberg said the current market downturn offers investors a chance to enter Bitcoin.
Institutional flows signal growing confidence.
WisdomTree CEO Jonathan Steinberg said on Tuesday that Bitcoin should not be viewed as “digital gold,” adding that a recent downturn in crypto markets could present buying opportunities for investors, as the asset class continues to mature.
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Speaking at the DC Blockchain Summit on Tuesday, Steinberg said Bitcoin now offers “a very, incredibly well constructed exposure,” while describing the current “crypto winter” as a period that “does give an opportunity for a lot of people to allocate.”
He pushed back on comparisons between Bitcoin and Gold, noting that tokenized versions of fully backed gold already exist on blockchain networks.
“You call Bitcoin digital gold? No, it’s not digital gold,” he said.
Steinberg said the crypto market, valued at roughly $2 trillion, has already surpassed the size of the exchange-traded fund (ETF) industry when it first launched in the mid-2000s, underscoring the rapid growth of digital assets.
(Right) Jonathan Steinberg, Founder and CEO, WisdomTree Investments | (Inner Right) Amy Oldenburg, Head of Digital Asset Strategy, Morgan Stanley | (Inner Left) Teddy Fusaro, President, Bitwise Asset Management
“And there, I think you’re going to be normalizing the experience of he on chain user, where they only had crypto,” he said.
“Now they’re going to want banking services and other rails, and they’re going to want other assets to diversify against.”
However, he cautioned that much of the broader crypto ecosystem remains highly speculative.
Referring to the thousands of smaller tokens in circulation, he said many were created “solely for the purpose of speculation,” likening them to “tulips.”
The Digital Gold Debate
The debate over Bitcoin’s role as “digital gold” has intensified in recent weeks as markets react to escalating tensions linked to the Iran conflict, prompting fresh scrutiny from analysts and policymakers.
Historically, geopolitical shocks have triggered sharp moves in crypto markets, but the latest tensions produced only muted price reactions in Bitcoin and other major tokens.
Erik Norland, chief economist at CME Group, said crypto assets show near-zero correlation with both Gold and the U.S. dollar, suggesting their price movements are driven more by internal market dynamics than macroeconomic shocks.
Two Different Customers
Steinberg said investors in crypto and traditional financial products represent “two different customers,” with ETFs — now a roughly $30 trillion market — continuing to dominate global access to liquid assets.
Looking ahead, he said blockchain technology could reshape capital markets through tokenization and faster settlement systems.
The shift to on-chain infrastructure, including tokenized deposits and central bank initiatives, could “unlock trillions and trillions of dollars of capital,” he added.
Steinberg also said crypto-native investors are likely to demand broader financial services over time.
Crypto and Bitcoin Flows Signal Demand
Crypto investment products drew strong inflows last week despite heightened geopolitical tensions, reinforcing the industry executives’ view that the asset class is maturing and attracting broader investor interest.
Digital asset funds attracted $1.06 billion, extending a three-week run of positive flows to $2.2 billion, according to CoinShares.
The latest gains offset a large portion of the roughly $3 billion in outflows seen during the prior five-week period.
The data suggests investors are continuing to build positions despite recent market volatility, aligning with industry views that the current downturn presents a window for allocation.
Bitcoin drew the majority of inflows, pulling in $793 million, or about three-quarters of the weekly total.
The three-week inflow streak into bitcoin now totals $2.2 billion, nearly reversing earlier losses.
At the same time, short-bitcoin products saw modest inflows of $8.1 million, indicating some investors are positioning for near-term price swings even as overall sentiment improves.
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The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
