Key Takeaways
- Matt Hougan noted a sharp rise in financial advisors' personal Bitcoin investments.
- Regulatory barriers limit client portfolios from including Bitcoin ETFs.
- Institutional investors continue increasing their Bitcoin ETF holdings.
At the Barron’s Advisor 100 Summit, Matt Hougan, Chief Investment Officer at Bitwise, emphasized the growing interest in Bitcoin among top US financial advisors.
He noted a significant rise in personal Bitcoin investments, with around 70% of advisors now owning Bitcoin, compared to just 10-20% in previous years.
Hougan commented:
There’s a very sophisticated technical word that economists use for this kind of year-over-year phenomenon: whoa.
Trends
Despite this personal investment trend, client allocations remain limited, as many advisors face restrictions from broker-dealers on Bitcoin ETF purchases.
Hougan suggested that client portfolios typically follow the advisors’ personal investments by 6 to 12 months.
Surge in value
Bitcoin’s surge in value—up 50% year-to-date to $64,000—has bolstered its appeal among institutional investors.
Over 1,000 institutions now hold Bitcoin ETFs, with BlackRock’s iShares Bitcoin Trust leading the way.
Major hedge funds like Citadel Securities and Millennium Management have also increased their Bitcoin ETF holdings, reflecting strong institutional support.
Analyst Eric Balchunas expects institutional involvement to double next year, indicating growing confidence in Bitcoin’s role in the financial sector.
