According to Matt Hougan, Chief Investment Officer of Bitwise Asset Management, 70% of the top U.S. financial advisors now personally hold cryptocurrency.
This represents a significant shift from just a few years ago when only 10% to 20% of advisors owned digital assets.
Hougan shared these insights during the Barron’s Advisor 100 Summit last Friday, where he gauged the growing interest among the financial elite in digital currencies like Bitcoin (CRYPTO:BTC).
During his speech, Hougan noted the increased confidence in crypto among advisors.
"A wave of the most powerful people in finance are finally allocating to crypto," he remarked in a memo to clients.
This observation comes after asking attendees how many personally owned Bitcoin or other crypto assets, with nearly 70% of hands raised compared to much lower responses in previous years.
Despite this personal interest, few advisors currently allocate cryptocurrencies to their clients' portfolios.
"When I asked how many had allocations to Bitcoin in client accounts, very few kept their hands raised," Hougan observed.
The main obstacle is the restrictions imposed by broker-dealers, which still prevent advisors from purchasing spot Bitcoin ETFs for their clients.
Hougan, however, believes this situation will soon change.
He explained that advisors tend to first invest in crypto personally before offering it to clients, predicting that client allocations may follow within 6 to 12 months.
The memo also highlighted other positive trends supporting the broader cryptocurrency market.
These include the U.S. Federal Reserve’s recent rate cuts, the approval of options on spot Bitcoin ETFs, and Morgan Stanley’s move to embrace the crypto infrastructure.
Hougan emphasised that these raised hands at the summit reflect one of the most significant signs of crypto's growing acceptance within the financial industry.