Matt Hougan Talks About Bitcoin Buzz Amongst Top US Financial Advisors

2 mins
Updated by Harsh Notariya
Join our Trading Community on Telegram

In Brief

  • Matt Hougan discussed growing Bitcoin interest among top US financial advisors at Barron’s Advisor 100 Summit.
  • Personal Bitcoin investments by financial advisors have risen dramatically, though client allocations lag behind.
  • Institutional investors’ support for Bitcoin ETFs continues to grow, signaling broader acceptance within finance.
  • promo

At Barron’s Advisor 100 Summit, a noticeable shift in sentiment toward Bitcoin was clear among America’s top financial advisors. Matt Hougan, Chief Investment Officer at Bitwise, conveyed pivotal insights, illustrating the industry’s stance on cryptocurrency, particularly Bitcoin.

Hougan’s speech highlighted an engaging session that indicated a substantial rise in personal investments in Bitcoin by financial advisors.

Bitcoin is Gradually Becoming Investors’ Favorite

Compared to a few years ago, when only about 10-20% of attendees had exposure to cryptocurrencies, this year showed a dramatic increase. Notably, around 70% indicated they personally owned crypto assets.

“There’s a very sophisticated technical word that economists use for this kind of year-over-year phenomenon: whoa,” Hougan wrote.

Read more: Who Owns the Most Bitcoin in 2024?

This change is significant; it reflects a deepening interest in cryptocurrencies within professional finance circles. Despite this personal enthusiasm, actual client allocations in Bitcoin are still infrequent. Many advisors face regulatory and institutional barriers that prevent them from including Bitcoin exchange-traded funds (ETFs) in client portfolios.

“Many of these advisors work for broker-dealers that do not even allow them to buy Bitcoin ETFs yet. But that will come. One thing I’ve learned from working at Bitwise for seven years is that advisors virtually always allocate first in their personal accounts. Client allocations typically follow 6 to 12 months later,” Hougan stated.

Moreover, other bullish indicators include recent economic developments such as the Federal Reserve’s rate cut and the SEC’s approval of options on Bitcoin ETFs. These developments, along with the direct observations from the summit, highlight a growing confidence among financial professionals in the viability of Bitcoin as an investment asset.

The spike in advisors’ personal ownership of Bitcoin aligns with the cryptocurrency’s performance. Bitcoin has surged over 50% year-to-date, trading around $64,000, reflecting demand and heightened investor interest.

Bitcoin Price Performance
Bitcoin Price Performance. Source: TradingView

The rising appeal of Bitcoin and Bitcoin ETFs also extends to institutional investors. According to analyst Eric Balchunas, over 1,000 institutional investors now hold Bitcoin ETFs on their balance sheets. Notably, the iShares Bitcoin Trust (IBIT) by BlackRock has 661 institutional holders, with 20% of its shares held by institutions and large advisors.

In addition, there has been a significant shift among the top US hedge funds, with 60% now holding Bitcoin ETFs, a sharp increase from earlier in the year. Firms such as Citadel Securities, Millennium Management, and Fortress Investment are increasing their stakes, emphasizing solid institutional backing for Bitcoin.

Eric Balchunas, a senior analyst at Bloomberg, highlighted the extraordinary growth of Bitcoin ETFs. He predicts a potential doubling of institutional involvement next year. Furthermore, the broader acceptance of Bitcoin ETFs among registered investment advisors indicates a more widespread institutional trust in BTC’s value.

Top crypto projects in the US | October 2024
Exodus Exodus Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024
Exodus Exodus Explore
Coinrule Coinrule Explore
Uphold Uphold Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | October 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Harsh.png
Harsh Notariya
Harsh Notariya is an Editorial Standards Lead at BeInCrypto, who also writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created...
READ FULL BIO
Sponsored
Sponsored