Financial Advisors Warm Slowly to Bitcoin as Portfolio Questions Evolve

More than a year after spot bitcoin ETFs debuted in the U.S., financial advisors remain cautious but increasingly curious about crypto — a shift that reflects the asset’s gradual move into mainstream finance.

“Most advisors still aren’t actively recommending bitcoin to clients,” said Gerry O’Shea, Head of Global Market Insights at crypto asset manager Hashdex, in an interview with CoinDesk. “While there’s a small subset leading the charge, the majority are still in learning mode.”

According to O’Shea, the conversation has progressed. Gone are the days of “What is bitcoin?” — now, advisors are asking, “Where does it fit in a portfolio?” They’re grappling with whether bitcoin should be considered a growth asset like equities, a hedge like gold, or something else entirely.

Education remains a central focus, O’Shea emphasized. Advisors are open-minded, but naturally deliberate. “Due diligence takes time, and the advisory industry tends to move slowly,” he said. “We’re still in the early innings.”

Shifting Concerns: From Energy to Utility

Volatility remains the top concern for many, especially among older advisors. Despite a 16-year track record, bitcoin’s steep drawdowns — often exceeding 20% — can be a psychological hurdle.

Environmental impact, once a headline issue, has faded slightly. O’Shea noted a shift in the proof-of-work narrative, with more people recognizing bitcoin mining’s potential to support renewable energy infrastructure.

The association with illicit activity — long a sticking point for regulators — still surfaces in advisor conversations. “Some still echo the idea that bitcoin is for criminals,” he said, adding that even in Congress, the perception lingers.

Stablecoins and Smart Contracts: The Bigger Picture

For 2025, O’Shea highlighted bitcoin and stablecoins as the dominant digital asset themes. While direct exposure to the stablecoin market is trickier for retail and institutional investors alike, platforms like Ethereum and Solana, which host these digital dollars, are gaining attention.

“There’s tangible utility here,” O’Shea explained. “Stablecoins are often described as crypto’s first killer app — easy to understand, easy to use.”

A Turning Point Approaches

Despite the current hesitation, O’Shea believes sentiment is poised to shift.

“Many advisors still underestimate how mature the crypto ecosystem has become and the long-term benefits of allocation,” he said. “By year-end, I expect significantly more to recognize the role digital assets can play in client portfolios.”