70% of Financial Advisors Now Invest in Bitcoin Personally

According to Matt Hougan, Chief Investment Officer at Bitwise, while widespread allocations of Bitcoin in client portfolios are still on the horizon, more financial advisors are now investing in cryptocurrency within their own personal portfolios.

In a memo shared with clients, Hougan noted that at the recent Barron’s Advisor 100 Summit in Palm Beach, he observed a notable shift in attitudes toward crypto investments among top financial advisors.

After asking attendees about their personal crypto holdings, he found that nearly 70% raised their hands, a stark contrast to the previous 10-20% responses from the past three years.

However, when Hougan inquired about Bitcoin allocations in client accounts, few hands remained raised, reflecting the restrictions many advisors face due to their affiliations with broker-dealers that haven’t yet permitted investment in spot Bitcoin ETFs.

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Historically, Hougan explained that advisors tend to invest in their own accounts first, typically followed by client allocations within six to twelve months.

Hougan highlighted several positive market indicators, such as the Federal Reserve’s recent interest rate cut and the approval of spot Bitcoin ETFs by major firms, including Morgan Stanley.

He emphasized that personal investment in Bitcoin fosters familiarity and comfort, which can influence advisors to subsequently advocate for crypto investments among their clients.

Alexander Stefanov