Despite the current market downturn, Bitwise Chief Investment Officer Matt Hogan said recent conversations with more than 40 financial advisors showed that interest in cryptocurrencies remains strong.
But their focus goes beyond Bitcoin.
Hogan said in a recent blog post that he spoke with a team of advisors who collectively manage more than $175 trillion, and that the discussions reflected a broader shift in how traditional finance views digital assets and what could shape the next phase of the crypto market’s growth.
Beyond Bitcoin
According to Bitwise CIO, the recovery of cryptocurrencies so far has been driven by a combination of new technology and a new group of investors entering the market. He pointed to the increased participation of Ethereum and early retail investors after the 2014 bear market, decentralized finance and stimulus-driven investors after the 2018 recession, and spot Bitcoin ETF and hedge fund participation after the 2022 FTX collapse.
Hogan said the next recovery may similarly depend on both expanding blockchain use cases and greater participation from financial advisors and institutional investors. He cited stablecoins, tokenization, perpetual futures, and other real-world blockchain applications as some of the most important areas receiving attention. Hogan explained that many institutional investors and advisory firms still face barriers to accessing the crypto market, so continued interest from these groups is important to the sector’s long-term prospects.
Due to its size and maturity, Bitcoin has historically led the crypto market recovery, but this may no longer be the case. He said stablecoins and tokenization have become a central topic across the financial industry, with major companies and regulators increasingly discussing the possibility. SEC Chairman Paul Atkins, Goldman Sachs CEO David Solomon, and BlackRock CEO Larry Fink have all publicly discussed stablecoins and tokenization in recent months.
Hogan said the increased attention from these institutions is impacting how advisors evaluate crypto-related investment opportunities. He said potential capital flows in the next market cycle could go towards blockchain networks and crypto companies related to tokenization and stablecoin infrastructure, rather than focusing solely on Bitcoin.
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Project drawing advisor interest
Assets such as Ethereum, Solana, Chainlink, Avalanche, and Canton, as well as projects focused on trading such as HyperLiquid, are also gaining traction. The executive also cited crypto companies like Figure, Circle, and Coinbase as examples of businesses related to the growing tokenization and stablecoin space.
Hogan said this conversation shows that financial advisors have a broader and more detailed understanding of the crypto industry than they did a few years ago.
“That could be what leads us into the next bull market.”
