Bitwise Chief Investment Officer Matt Hougan recently revealed the growing trend of top financial advisors “offering crypto” in their portfolios.
Speaking at the Barron’s Advisor 100 Conference in Palm Beach, Florida, Hougan shared details of how some “very powerful people” in the financial industry are beginning to embrace digital assets like Bitcoin.
Personal Crypto Investments Lead the Way
During his keynote, Hougan engaged the audience by asking how many of the attendees owned Bitcoin or other cryptocurrencies in their portfolios. He noted that, while in previous years, only 10-20% of the hands were raised, this year he saw almost 70% of those present agreeing to the personal holding of crypto.
This change suggests that financial advisors are becoming more familiar and comfortable with holding digital assets, indicating a possible future adoption of client portfolios.
However, while many advisors at the conference reported that they held crypto assets personally, very few indicated that they had allocated them to clients’ portfolios.
Hougan pointed out that this may be due to “restrictions” imposed by brokers, who do not yet allow direct investment in Bitcoin exchange-traded funds (ETFs). However, he noted that advisors often allocate their accounts first, and client allocations follow about six to twelve months later.
Notably, this trend suggests that as financial advisors gain more exposure to Bitcoin in their investments, it could pave the way for wider client adoption.
Hougan also highlighted other bearish market signs, including the US Fed’s recent interest rate cut and the approval of options on BlackRock’s Bitcoin ETF by the US Securities and Exchange Commission (SEC).
According to Bitwise Chief Investment Officer, these changes could lead to a favorable environment for crypto investments in the financial advisory sector.
The Impact of Bitcoin ETFs and the Wider Adoption of Crypto
Elaborating on the discussion surrounding the launch of several Bitcoin ETFs earlier this year, including Bitwise’s BITB product, Hougan revealed that the approval of these ETFs marks an important step in making digital assets “more accessible” to institutional investors and financial advisor clients. .
Bitwise CIO believes that as major institutions like Morgan Stanley approve these ETFs for client portfolios, the adoption of Bitcoin and other digital assets will accelerate even more.
According to Hougan, owning Bitcoin in person would be revolutionary for financial advisors. He explained that when advisors hold Bitcoin in their portfolios, they go from “skepticism to curiosity, and finally, comfort.”
As more financial advisors develop a personal connection with crypto assets, this familiarity could help ease the path to broader client adoption.
The featured image was created with DALL-E, a Chart from TradingView