Matt Hogan, chief investment officer at Bitwise, recently highlighted a growing trend among senior financial advisors to “allocate to crypto” in their portfolios.
Speaking at the Barron’s Advisor 100 Summit in Palm Beach, Florida, Hogan shared: Visions About how some of the “most powerful people” in the financial industry are starting to embrace digital assets like Bitcoin.
Personal investments in cryptocurrencies are leading the way
During his keynote, Hogan addressed the audience by asking how many of them held Bitcoin or other cryptocurrencies in their wallets. He noted that while in previous years only 10-20% of hands were raised, this year saw nearly 70% of attendees admit to personal crypto ownership.
This shift indicates that financial advisors are becoming increasingly familiar with and comfortable with owning digital assets, pointing to potential adoption in client portfolios in the future.
However, while many advisors at the summit reported that they personally owned crypto assets, far fewer indicated that they allocated them to client portfolios.
Hogan noted that this is likely due to “restrictions” imposed by stockbrokers, who have not yet allowed direct investment in Bitcoin ETFs. However, he noted that advisors tend to allocate funds to their own accounts first, then allocate funds to clients about six to 12 months later.
It is worth noting that this trend indicates that as financial advisors gain more exposure to Bitcoin in their investments, it may pave the way for wider adoption by clients.
Hogan also highlighted other bullish signals in the market, including the recent interest rate cut by the US Federal Reserve and the US Securities and Exchange Commission (SEC) approval of options on BlackRock’s Bitcoin exchange-traded fund.
According to Bitwise’s chief investment officer, these developments could lead to a more favorable environment for cryptocurrency investments in the financial advisory sector.
The Impact of Bitcoin ETFs and Wider Cryptocurrency Adoption
Commenting on the discussion surrounding the launch of several Bitcoin ETFs earlier this year, including Bitwise’s BITB product, Hogan revealed that the approval of these funds represents an important step in making digital assets “more accessible” to institutional investors and financial advisor clients.
Bitwise’s CIO believes that with major financial institutions like Morgan Stanley approving these ETFs for client wallets, the adoption of Bitcoin and other digital assets will accelerate even further.
According to Hogan, owning bitcoin personally could be a game changer for financial advisors. He explained that once advisors hold bitcoin in their wallets, they go from “skepticism to curiosity, and eventually to comfort.”
As more financial advisors develop personal relationships with crypto assets, this familiarity could help pave the way for wider adoption by clients.
Featured image created using DALL-E, chart from TradingView
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