Bitcoin's recovery could prove more durable than past rallies because institutional allocations now underpin demand, according to comments deVere Group CEO Nigel Green issued on Sept. 21. The chief executive of the financial advisory firm argued that purchases made through regulated investment products signal a shift toward longer-term ownership, supporting his prediction that buyers have regained control of the market.

"The market's momentum has flipped, and this time there's serious institutional money behind it," Green said. "Billions are flowing into regulated bitcoin products week after week. It's patient capital that plans to stay, a very different animal from the leveraged speculation that fuelled past rallies."

Bitcoin ETF Flows Remain Uneven

U.S. spot bitcoin exchange-traded funds (ETFs) attracted $433 million in net inflows on Sept. 18, following $159.5 million the previous session. The products hold bitcoin directly and began trading in the U.S. in January 2024, giving conventional brokerage and retirement accounts a regulated channel for exposure to the asset. Combined with $159.9 million recorded on Sept. 14, however, those purchases only narrowly offset withdrawals of $746.3 million on Sept. 15 and 16. Farside's rounded daily figures, published in its public ETF flow tracker, show net inflows of approximately $6.1 million across the five trading days.

The recovery began on Thursday, when bitcoin ETFs returned to positive flows after two consecutive sessions of withdrawals. BlackRock's IBIT led the rebound, while ether and XRP funds continued losing money. The divergence showed that renewed demand for bitcoin products had not yet translated into consistent buying across the broader crypto ETF market. The Sept. 18 session delivered the largest single-day intake of the stretch, leaving the five-day cumulative figure only marginally positive despite the late rebound.

Supply Case Meets Higher Interest Rates

Concerns about currency purchasing power form another pillar of Green's case, alongside his assessment of institutional buying. Bitcoin's maximum supply of 21 million coins creates a predetermined issuance constraint. Green contrasted that structure with rising public debt and the competing demands facing central banks as they seek to contain inflation while supporting economic activity.

The monetary backdrop nevertheless tightened when the Federal Reserve raised its benchmark target range, the federal funds rate, to 3.75%-4% on Sept. 16.ymakers approved the quarter-point increase unanimously and described inflation as elevated. Higher interest rates lift the returns available on interest-bearing assets, raising the opportunity cost of holding bitcoin, which does not itself pay interest.

A separate assessment from Grayscale characterized the latest increase as a limited adjustment within the current Fed cycle. The asset manager distinguished one or two potential increases in 2026 from the prolonged tightening that began in 2022. That interpretation complements Green's view that demand can remain resilient despite higher rates, although both assessments represent market outlooks.

Regulatory Clarity Remains a Conditional Demand Driver

Clearer U.S. crypto rules could encourage pension funds and wealth managers to increase their exposure, Green argued. His forecast depends in part on large investors becoming more comfortable with the regulatory framework governing digital assets. Such comfort would extend the demand he associates with regulated bitcoin products into a wider pool of portfolio allocations.

The legislative backdrop includes a setback after senators failed to advance the CLARITY Act, a proposed market-structure framework for digital assets, toward floor debate on Sept. 15. The procedural vote required 60 votes, the level the Senate normally needs to cut off debate and advance a bill, and its failure left the measure unresolved.

Green nevertheless expects a larger potential pool of buyers if regulation becomes clearer, while acknowledging that volatility and pullbacks will continue. "Once big allocators see rules they can work with, the next wave of demand could dwarf this one," he said, elaborating: "The crypto winter looks to be ending. Every dip that gets bought strengthens the case that the floor has moved higher."

"Bitcoin is a permanent fixture in the global portfolio conversation, and the bulls know it," the executive concluded.

The original report appeared on Bitcoin.com News.