Financial advisors in the United States are still tiptoeing around the idea of recommending bitcoin to their clients, nearly eighteen months after bitcoin spot exchange-traded funds were introduced. Although some in the field have embraced the potential of digital assets, the majority remain cautious, according to Gerry O’Shea, head of global market insights at Hashdex. “Most of what we’ve been doing in the last few years is based around education,” O’Shea remarked in a recent interview with CoinDesk.
Educating the Advisors
The digital currency landscape continues to be a puzzle for many financial advisors. Despite the growing interest, the pace of adoption remains sluggish. O’Shea emphasized that while advisors are gradually opening up to cryptocurrency, understanding the intricate role these assets play in a portfolio still requires time and effort. The conversation is shifting from basic inquiries about blockchain technology to more nuanced discussions about digital assets’ appropriate allocation in investment portfolios. Advisors are pondering whether bitcoin should be treated like equities or perhaps a modern alternative to gold. This follows a pattern of institutional adoption, which we detailed in JPMorgan to Accept Bitcoin ETFs as Loan Collateral in Expansion of Crypto Access.
One of the biggest hurdles remains the notorious volatility of bitcoin. Even seasoned advisors who recognize bitcoin’s decade-plus history have difficulty reconciling its wild price swings with the needs of their clients. The currency’s reputation for dropping 20% or more in value isn’t easy to digest for those accustomed to more stable investments. Yet, the energy consumption concerns that once dominated the discourse have softened, as individuals begin to see bitcoin mining’s potential in fostering renewable energy developments.
Overcoming Stigmas and Regulatory Concerns
Despite the slow-moving acceptance, financial advisors are not entirely dismissive of digital currencies. Bitcoin’s shadowy past, with its association with illicit activities, still lingers in the minds of many, including policymakers. O’Shea noted that criminality is a point of contention, but narratives are evolving. The emergence of stablecoins and smart contract platforms like Ethereum and Solana is reshaping opinions, suggesting a broader understanding and appreciation for blockchain’s utility. For a deeper dive into how ETF investments in Bitcoin and Ethereum are diverging, see Why Bitcoin and Ethereum ETF Investments Are Diverging.
O’Shea highlighted the increasing recognition of these platforms, particularly stablecoins, as financial tools with substantial real-world applications. “There is certainly real utility for these platforms. A lot of people refer to stable coins as the first killer app,” he noted. The potential for blockchain technology to underpin diverse financial systems is becoming more apparent—a promising sign for future adoption.
The Road Ahead
While financial advisors’ hesitation persists, O’Shea remains optimistic about the future. He projects a shift in sentiment, suggesting that by the end of the year, more advisors will recognize the value of including digital assets in portfolios. The ecosystem’s maturation is not easily dismissed, and the potential benefits of these investments are difficult to ignore.
The journey towards widespread acceptance of bitcoin and other digital assets among financial advisors is fraught with challenges. Yet, with continued education and shifting perceptions, it seems likely that crypto will find its way into more investment strategies. As the industry evolves, the conversation will undoubtedly continue, raising questions about how these digital assets will reshape the financial landscape. The coming months could prove pivotal in determining whether bitcoin will finally earn its place alongside traditional investments.
Source
This article is based on: Financial Advisors Remain Hesitant Towards Bitcoin — But Won’t Be for Long
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
