Guess what? Financial advisors are hopping on the crypto train, and it's not just a tiny trend anymore. Matt Hougan, the big cheese over at Bitwise Asset Management, spilled the beans at the Barron’s Advisor 100 Summit last Friday. And the news? A whopping 70% of top financial advisors now have a slice of cryptocurrency in their personal stash, a massive jump from the mere 10-20% just two years ago.
Hougan couldn't help but notice the shift in the room during his speech. When he asked these money maestros if they owned any crypto, nearly every hand shot up. Talk about a dramatic transformation! He described it as a wave of the financial elite finally diving into the crypto pool.
However, despite their personal enthusiasm for digital assets, these advisors are still cautious when it comes to their clients. Hougan pointed out that very few advisors admitted to including crypto in their clients' portfolios. The culprit? Broker-dealer restrictions that currently prevent advisors from buying spot Bitcoin ETFs for their clients.
But don’t lose hope just yet! Hougan is optimistic that this will change soon. He observed that advisors typically dip their toes in crypto personally before offering it to their clients. Based on his experience, client allocations usually follow about 6 to 12 months later.
Hougan also highlighted some bullish factors giving the crypto market a boost right now. The U.S. Federal Reserve’s rate cut, the SEC’s approval of options on spot Bitcoin ETFs, and Morgan Stanley's recent nod to these ETFs are all signs that the financial infrastructure for crypto is getting stronger by the day.
In a nutshell, the surge of raised hands at Palm Beach is one of the clearest signs of changing times. Hougan summed it up perfectly, saying that once people buy a bit of Bitcoin, curiosity quickly replaces fear. So, don't be surprised if more folks start diving deeper into the world of digital assets. The crypto revolution is here, and it’s just getting started!
