Cryptocurrency is making inroads among the financial elite, with client adoption expected to follow in the near future. Matt Hougan, the Chief Investment Officer (CIO) at Bitwise Asset Management, revealed that 70% of leading U.S. financial advisors now personally hold cryptocurrency. This marks a sharp rise from just two years ago, when only 10% to 20% of advisors had invested in digital assets.
Advisors’ Growing Confidence in Crypto
The Barron’s Advisor 100 Summit, which brings together some of the top financial advisors in the country, provided a snapshot of the changing attitudes toward digital currencies. Hougan noted that the increase in personal crypto ownership among advisors signals a growing level of trust in these assets.
“A growing number of influential figures in finance are now embracing crypto,” Hougan stated in a memo following the summit. His comments came shortly after the launch of spot Bitcoin exchange-traded funds (ETFs), including Bitwise’s own offering, BITB. During his presentation, Hougan asked attendees how many of them owned Bitcoin or other cryptocurrencies. Around 70% raised their hands, a significant jump compared to responses from previous years.
Hougan has asked the same question at this summit for the past three years. In earlier years, only 10% to 20% of advisors indicated they owned crypto. Commenting on the rapid shift, Hougan humorously added, “There’s an economic term for this kind of year-over-year change: whoa.”
Why Client Portfolios Are Lagging Behind
While many advisors are personally invested in crypto, few have yet to introduce these assets into client portfolios. Hougan attributes this gap to restrictions from broker-dealers, which currently limit advisors’ ability to buy spot Bitcoin ETFs for their clients.
Nevertheless, Hougan expects this to change soon. Advisors often begin by investing in crypto themselves before recommending it to clients, he explained. Based on Bitwise’s observations, it typically takes about six to twelve months before advisors feel comfortable enough to extend crypto investments to their clients.
Market Conditions and Evolving Financial Infrastructure
Several positive developments are supporting cryptocurrency’s broader adoption. Hougan pointed to the U.S. Federal Reserve’s first interest rate cut in four years, as well as the SEC’s approval of options on spot Bitcoin ETFs, as factors that could help drive crypto’s growth.
Additionally, the recent approval of Bitcoin ETFs by major financial firms like Morgan Stanley is a signal that the infrastructure necessary to support digital assets is steadily being built.
However, for Hougan, the most compelling sign of the times was seeing how many financial advisors at the summit were personally invested in cryptocurrency. According to him, owning even a small amount of Bitcoin has a powerful effect on people’s perceptions. Once advisors or clients begin tracking the asset, curiosity tends to replace hesitation, sparking greater interest in crypto and blockchain technology.
The Future of Crypto in Wealth Management
The increasing number of financial advisors investing in cryptocurrency may pave the way for wider adoption in the wealth management industry. As broker-dealer restrictions ease and financial institutions continue developing the infrastructure for digital assets, more advisors are likely to offer crypto as an investment option for their clients.
For now, the results from the Barron’s Advisor 100 Summit show that 70% of top advisors are already personally investing in crypto—a significant sign that client portfolios could soon follow. This shift highlights how crypto is increasingly being seen as a viable asset class, embraced by some of the most forward-thinking professionals in finance.
