Lawrence Damilola
Bitwise Chief Investment Officer Matt Hougan has pointed to an increasing trend of financial advisors investing in crypto assets within their personal portfolios.
In a memo to clients on Tuesday, Hougan discussed his observations from the Barron’s Advisor 100 Summit in Palm Beach, Florida, where he delivered a keynote speech. He noted a shift in attitudes toward Bitcoin and other crypto assets among key figures in the finance industry.
“A wave of the most powerful people in finance are finally allocating to crypto,” Hougan said, reflecting on the summit.
He had asked attendees how many owned Bitcoin or other crypto assets, and he observed that nearly 70% of the audience raised their hands. “There’s a very sophisticated technical word that economists use for this kind of year-over-year phenomenon: whoa,” he added. Hougan commented on the marked change from previous years, when only 10% to 20% of attendees raised their hands.
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Personal Crypto Allocations Outpacing Client Portfolios
While financial advisors are increasingly allocating more for crypto in their personal portfolios, they have not yet done the same for their clients. Hougan noted that when he asked the audience how many had allocated Bitcoin to client accounts, very few hands remained raised. He clarified that many advisors work for broker-dealers that are not yet allowed to buy the recently launched spot Bitcoin ETFs, such as Bitwise’s BITB product.
According to Hougan, this gap is expected. He stated that advisors typically allocate to their personal accounts first, with client portfolios following six to twelve months later. “When you hold and track Bitcoin in your own portfolio, fear and dismissal tend to give way to curiosity and, eventually, comfort,” he explained.
Hougan also pointed to several important developments in the crypto market during his speech. He highlighted the approval of spot Bitcoin ETFs, including those by Bitwise and BlackRock, and the Federal Reserve’s recent 50 basis point interest rate cut. “Buying a little bit of Bitcoin is incredibly powerful for people,” Hougan remarked, emphasizing the significance of personal investments in driving wider adoption.
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He also noted the approval of options on BlackRock’s Bitcoin ETF, calling the participation of major financial institutions one of the strongest signs of the market’s growth.
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LAWRENCE
Lawrence is a cryptocurrency journalist covering blockchain developments and digital assets.
