- Wealth advisers are adopting Bitcoin ETFs faster than any previous ETF, per Bitwise CIO.
- BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw $1.45 billion from wealth advisers.
- 50% of ETF inflows are controlled by wealth advisers, making them key to BTC ETF growth.
- Barriers remain, as 55% of RIAs still avoid discussing crypto with clients.
Wealth Advisers Embrace Bitcoin ETFs at Unprecedented Rate: Bitwise CIO
Wealth advisers are adopting Bitcoin exchange-traded funds (ETFs) faster than any other ETF in history, according to Matt Hougan, chief investment officer at asset manager Bitwise. Responding to a bearish take by investment researcher Jim Bianco, Hougan emphasized that despite smaller uptake compared to the overall market, wealth advisers have contributed $1.45 billion to BlackRock’s iShares Bitcoin Trust ETF (IBIT).
While Bianco highlighted that 85% of BTC ETF inflows are not from traditional financial institutions, Hougan stressed that financial advisers are increasingly embracing crypto ETFs. These advisers—ranging from independent registered investment advisers (RIAs) to large firms like Morgan Stanley—control up to 50% of ETF inflows, making them crucial for the adoption of cryptocurrency funds.
Why BTC ETFs Are Winning Over Wealth Advisers
In August 2024, Morgan Stanley, the largest wealth manager in the U.S., authorized its 15,000 financial advisers to recommend Bitcoin ETFs, further illustrating the growing willingness among wealth advisers to include BTC products in their portfolios. The four largest ETF launches of the year have all been Bitcoin ETFs, signaling a continued push for crypto adoption within traditional financial channels.
Despite these gains, challenges persist. According to research by Cerulli Associates, 55% of RIAs have no plans to discuss cryptocurrency with their clients, and only 2.6% actively recommend it. Nevertheless, the uptake of IBIT alone—at $1.45 billion—places it among the fastest-growing ETFs of 2024.
The Future of BTC ETFs and Wealth Advisers
The growing interest in Bitcoin ETFs, particularly among wealth advisers, suggests a shift in how crypto is being viewed within the financial advisory space. Bitwise CIO Matt Hougan sees wealth advisers as essential to driving the adoption of cryptocurrency funds, even as regulatory and market challenges remain. For now, the rapid uptake of BTC ETFs among advisers signals a promising trend in mainstream crypto investment.
