As Bitcoin and other cryptocurrencies continue to gain momentum in 2024, Matt Hougan, the Chief Investment Officer at Bitwise, claims that some of the most influential figures in finance are now holding crypto. In a memo issued on Tuesday, Hougan emphasized a major shift in the profile of crypto investors over the past year, signaling that the financial landscape could change even further in the coming months.
Increasing Crypto Adoption Among Financial Leaders
According to Hougan, there has been a significant rise in the number of prominent individuals within the finance sector allocating part of their portfolios to cryptocurrencies. This marks a notable departure from previous years when crypto ownership was far less common among top financial professionals. Speaking at Barron’s Advisor 100 Summit in Florida last week, Hougan described the evolving dynamics of crypto investment and pointed out a growing trend among finance leaders to embrace digital assets like Bitcoin.
Hougan recounted an interesting moment during his speech when he asked how many attendees held Bitcoin or other cryptocurrencies. Unlike past events, where only 10-20% of the audience might have responded affirmatively, this time nearly the entire audience raised their hands. He humorously described this change as a “whoa” moment, noting that the shift in crypto ownership has become too large to ignore.
Spot Bitcoin ETFs and Changing Investor Profiles
A key factor driving this shift, Hougan noted, is the introduction of Spot Bitcoin ETFs in the U.S. this year, which has opened up crypto investing to a broader range of institutional and individual investors. The availability of these ETFs allows investors to gain exposure to Bitcoin without directly owning it, making the asset more accessible to traditional investors who may have been hesitant before. This has led to a significant change in the characteristics of typical crypto investors, with many high-powered finance executives now allocating portions of their portfolios to digital assets.
Financial Advisors Lagging Behind, but a Shift is Coming
Despite this growing personal interest in crypto, Hougan acknowledged that many financial advisors have yet to allocate client accounts to the asset class. However, he believes this lag between advisors’ personal investments and their clients’ portfolios won’t last long. Hougan expects a shift to occur within the next 6-12 months, as advisors typically follow a pattern where their own allocation trends eventually extend to their clients. This could mean an influx of institutional and individual crypto investments in the near future.
