Financial Advisors Still Cautious on Bitcoin, but Industry Momentum Builds
Eighteen months after spot bitcoin ETFs entered the U.S. markets, financial advisors remain largely hesitant to allocate client assets to digital currencies. Yet the tone of industry conversations has shifted, signaling a slow but measurable evolution in sentiment.
“Most advisors aren’t there yet when it comes to recommending bitcoin,” said Gerry O’Shea, Head of Global Market Insights at crypto asset manager Hashdex, in a recent interview with CoinDesk. “But many are asking deeper questions — not about what bitcoin is, but how it might function in a modern portfolio.”
Caution Persists Amid Familiar Concerns
O’Shea noted that while a minority of advisors are taking proactive steps toward crypto integration, the majority remain in due diligence mode — influenced primarily by concerns around volatility, regulatory uncertainty, and lingering reputational risks.
“Volatility is the most cited concern,” he said. “Even with a 16-year track record, bitcoin’s frequent double-digit swings challenge traditional portfolio allocation frameworks.”
Concerns about environmental impact, which were once top-of-mind, have receded. O’Shea cited growing awareness around bitcoin mining’s evolving role in supporting renewable energy development as a factor in that narrative shift. Meanwhile, criminal usage — still a talking point among policymakers — remains a barrier for some advisors.
Stablecoins, Ethereum, and the Expanding Crypto Toolkit
O’Shea highlighted bitcoin and stablecoins as the central pillars of 2025’s digital asset conversation. While exposure to stablecoin adoption remains structurally difficult, he suggested that infrastructure plays — including Ethereum and Solana — are likely to attract increasing attention from institutions.
“Stablecoins represent a clear use case, and the platforms that support them could see growing investor interest,” he said.
The Tipping Point May Be Near
Despite current hesitations, O’Shea is optimistic that adoption among financial advisors will accelerate.
“Too many are underestimating how far the crypto ecosystem has come,” he said. “By year-end, we expect broader awareness of the long-term case for a small, strategic bitcoin allocation — and greater willingness to act on it.”
