Bitwise CIO Says Adviser Interest Is Shifting From Bitcoin to Stablecoins, Tokenization

Financial advisers are shifting their interest in digital assets away from Bitcoin and toward stablecoins and real-world asset tokenization, according to Bitwise Chief Investment Officer Matt Hougan.

In an investor letter dated June 10, Hougan wrote that after recently meeting with more than 40 financial advisers, he found their attention was more focused on stablecoins and tokenization than on Bitcoin.

Financial advisers remain interested in the crypto market, but the focus has moved from expectations of price gains to real-world use cases. Stablecoins and tokenization in payments and capital markets were at the center of those conversations, he wrote.

Hougan attributed the shift to a weakening of Bitcoin's inflation-hedge narrative and the emergence of stablecoins and tokenization as key themes in finance. He noted that major financial figures, including Securities and Exchange Commission Chair Paul Atkins and BlackRock Chief Executive Officer Larry Fink, have also been speaking actively about those areas.

Still, Hougan said Bitcoin's price in the $60,000 range remains attractive for long-term investors. He wrote that Bitcoin has historically been the first asset to lead rebounds after bear markets and said his long-term outlook remains unchanged.

Hougan also named Ethereum, Solana, Chainlink and Avalanche as assets that could benefit from tokenization. Financial advisers overseeing more than $175 trillion in assets understand the crypto industry much more deeply than they did in the past, he wrote, adding that the shift in their interest could mark the starting point for the next bull run.