Top financial leaders are finally allocating for crypto, says Bitwise CIO

Share this article

Top US financial advisors are increasingly allocating to crypto assets in their portfolios, according to Bitwise CIO Matt Hougan. Speaking at the Barron’s Advisor 100 Summit, Hougan noted a significant shift in crypto adoption among attendees.

In his latest memo to the crypto market, Hougan reported that when asked about personal crypto holdings, about 70% of advisors raised their hands, a sharp increase from previous years where only 10-20% indicated holding .

“A wave of the most powerful people in finance is finally allocating to cryptocurrency. When it spreads from them to their customers, things could get interesting quickly,” Hougan said.

However, client account allocations remain limited, with many advisors working for broker-dealers that do not yet allow purchases of Bitcoin exchange-traded funds (ETFs).

Further, he noted that advisers typically allocate to their accounts first, with client allocations following 6 to 12 months later.

The CIO highlighted recent developments in the crypto space in its memo, including the Fed’s first rate cut in four years, Morgan Stanley’s approval of the Bitcoin ETF, and the SEC’s approval of BlackRock’s IBIT options last week.

Hougan also emphasized the importance of personal cryptocurrency ownership in fostering familiarity and comfort with the asset class among finance professionals.

Notably, Bloomberg senior ETF analyst Eric Balchunas pointed out on September 9 that Bitcoin ETFs collectively have more than 1,000 institutional holders after just two 13F reporting periods.

Using IBIT as a benchmark, Balchunas pointed out that 20% of its 661 holders are large institutions and advisers, adding that he expects that percentage to reach 40% within a year.

Family offices are bullish on crypto

Family offices are also bullish on crypto, with their optimism for digital assets doubling from 8% to 17% in a year, according to Citi’s “Global Family Office 2024 Survey Report,” published on September 20.

Interestingly, family offices prefer direct exposure to crypto, as 24% of them reported investing in digital assets through direct purchases, while 18% reported investing through cryptocurrency-related products.

However, the majority of survey family offices have said they plan to deride crypto in the next 12 months, despite a jump in overall optimism. Moreover, 73% of them

Share this article