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Financial Advisors Increasingly Investing in Bitcoin as Sentiment Shifts
Sep. 24, 2024. 1 min. read.
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Financial advisors are increasingly investing in Bitcoin, with personal ownership rising to 70%. Despite regulatory barriers, growing institutional backing and recent economic developments signal greater confidence in Bitcoin’s long-term potential.
At the Barron’s Advisor 100 Summit, Matt Hougan, Chief Investment Officer at Bitwise, highlighted a noticeable shift in sentiment toward Bitcoin among America’s top financial advisors. His speech shed light on the increasing personal investments in Bitcoin by these professionals, even as client allocations lag behind.
Hougan shared key insights, noting that while only 10-20% of attendees owned cryptocurrency a few years ago, around 70% now hold crypto assets personally. “There’s a very sophisticated technical word that economists use for this kind of year-over-year phenomenon: whoa,” Hougan remarked, reflecting on the dramatic rise in Bitcoin ownership within the finance community.
Despite this personal enthusiasm, regulatory and institutional barriers prevent many advisors from offering Bitcoin exchange-traded funds (ETFs) to their clients. Hougan explained, “Many of these advisors work for broker-dealers that do not even allow them to buy Bitcoin ETFs yet. But that will come. Advisors virtually always allocate first in their personal accounts. Client allocations typically follow 6 to 12 months later.”
Additional signs of a growing bullish stance on Bitcoin include recent developments such as the Federal Reserve’s rate cut and the SEC’s approval of options on Bitcoin ETFs. These events have strengthened confidence among financial professionals in Bitcoin’s long-term potential as an investment.
Bitcoin’s performance has also fueled its rising popularity, with the cryptocurrency surging over 50% year-to-date, trading around $64,000. Institutions are taking notice, with over 1,000 now holding Bitcoin ETFs on their balance sheets, including major players like Citadel Securities and Millennium Management.
According to Eric Balchunas, senior analyst at Bloomberg, the institutional involvement in Bitcoin ETFs is expected to double next year, indicating broader acceptance and trust in Bitcoin’s value.
Source: Matt Hougan Talks About Bitcoin Buzz Amongst Top US Financial Advisors
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