Caution Lingers Among Financial Advisors on Bitcoin — Change Could Be Coming

Bitcoin’s Reputation Is Changing — and Financial Advisors Are Starting to Take Notice

Eighteen months after the approval of spot bitcoin ETFs in the U.S., financial advisors remain cautious — but their curiosity is growing.

According to Gerry O’Shea, Head of Global Market Insights at Hashdex, the shift is real: “We’re no longer answering ‘What is bitcoin?’ Now it’s, ‘Where does it belong in a portfolio?’”

While most financial advisors still shy away from recommending crypto, O’Shea says many are warming up to it, slowly but surely. “There’s a small but growing group that’s been proactive with clients. The rest? Still doing their homework.”

A Cautious Crowd, But Cracks Are Showing

Advisors’ top concern is volatility — not surprising, given bitcoin’s tendency for double-digit swings. Even with its growing maturity, the asset class is still viewed as unpredictable by much of the traditional wealth management world.

Other concerns are fading. Environmental impact, once a show-stopper, has slipped down the list, thanks in part to changing narratives around proof-of-work mining and its potential to support green energy. Illicit use cases still surface in discussions, but less frequently — a sign that institutional acceptance is slowly reshaping perception.

Beyond Bitcoin: The Stablecoin Opportunity

O’Shea pointed to bitcoin and stablecoins as the two themes defining 2025’s digital asset landscape. While it’s still tough for advisors to directly allocate to stablecoin-related growth, platforms like Ethereum and Solana — where these assets thrive — are drawing increased attention.

“There’s real utility in stablecoins,” he said. “They’ve become crypto’s most relatable application.”

The Next Step Is Inevitable

Advisors may be slow to act, but O’Shea believes the tide is turning.

“This ecosystem is far more developed than most give it credit for,” he said. “By the end of the year, we expect a lot more advisors to realize how a bitcoin allocation — even a small one — can benefit long-term portfolios.”