The Growing Interest in Crypto: How US Advisers Are Adapting After Trump’s Presidential Victory
The investment landscape in the United States appears to be showing signs of a paradigm shift, with cryptocurrency steadily weaving itself into the portfolios of financial advisers. A recent survey conducted by Bitwise, targeting 430 financial advisers between November 14 and December 20, sheds light on the evolving attitudes towards digital assets. Comprised of insights from wealth managers across the country, this data indicates that over half—56% to be precise—of respondents are now more open to investing in crypto following the aftermath of Donald Trump’s victory in the November 5th presidential election.
Expectations within the crypto industry are high as President-elect Trump takes office. Many believe his administration could usher in a more crypto-friendly environment, and some experts speculate bold moves may be on the horizon. Jack Mallers, founder and CEO of Strike, pointedly suggested that Trump might institutionalize cryptocurrencies further by potentially issuing an executive order designating Bitcoin as a US reserve asset on his first day in office. Such a move would undoubtedly set a significant precedent and strengthen Bitcoin’s perception as a legitimate store of value on the global financial stage.
Increased Exposure and Client Interest
Among financial advisers already familiar with the world of crypto, the momentum for deeper integration into portfolios remains strong. An impressive 99% of those who already have exposure to the space indicated plans either to maintain or increase their allocation this year. This heightened enthusiasm comes alongside a notable spike in client interest. A matching percentage of advisers reported a surge in client inquiries about cryptocurrencies over the past year, signaling a broader curiosity and willingness to explore these assets.
Bitwise’s chief investment officer, Matt Hougan, aptly summed up the sentiment: “Advisers are awakening to crypto’s potential like never before and allocating like never before.” This growing awareness could mark a turning point for the role of digital currencies within mainstream financial planning, as many recognize the opportunities for diversification and growth offered by these assets.
Perhaps most intriguing is the discovery that 71% of advisers acknowledged their clients were independently investing in cryptocurrencies outside of the adviser-client relationship. Bitwise highlighted this as a pivotal opportunity, describing these “held-away assets” as a potential entry point for advisers. By incorporating crypto into broader wealth planning, advisers can position themselves to add value to their clients’ investment journeys, fostering trust and staying relevant in an ever-changing marketplace.
Overcoming Barriers to Adoption
Despite the upward trend in interest and adoption, structural barriers continue to hinder cryptocurrency’s full integration into the advisory ecosystem. Access, in particular, remains a pressing challenge. According to the survey, only 35% of advisers indicated that they have the capability to purchase crypto directly within client accounts. This limitation hinders seamless adoption and prevents some advisers from taking full advantage of the opportunities presented by the growing digital asset market.
Addressing this access issue will be crucial for bridging the gap between interest and action. As crypto platforms and services simplify the incorporation of digital assets into client accounts, advisers will be better equipped to meet the rising demand head-on.
Price Volatility and Bitcoin’s Reserves
Meanwhile, Bitcoin, the flagship cryptocurrency, continues to showcase its trademark volatility. After briefly surpassing the $100,000 psychological threshold on January 7—marking its first time above this level since December 19—its value saw a sharp pullback, declining to $92,500 on January 8. While fluctuations like these may deter more conservative investors, they also provide opportunities for those seeking dynamic swings in the market.
At the same time, data suggests a growing trend of Bitcoin consolidation within US-based entities. According to CryptoQuant, as of January 9, the share of Bitcoin reserves held by US entities has reached an all-time high, surpassing those held offshore by a substantial 65%. This shift could point to an increasing domestic confidence in the asset, with American institutions strengthening their foothold in the Bitcoin market. Such developments not only reflect changing investor sentiment but also hint at the longer-term institutionalization of cryptocurrencies within the US.
A Transforming Landscape
The intersection of politics, finance, and technological innovation is shaping a new era for cryptocurrency adoption in the United States. As advisers grow more open to exploring digital assets and clients increasingly venture into the space, the potential for seamless integration only grows. However, significant hurdles, including access and infrastructure, must still be addressed to sustain this momentum and ensure broader inclusion.
Donald Trump’s leadership could serve as a fulcrum for this transformation. With guidance from a potentially pro-crypto administration, the perception and utility of these assets might evolve further, creating opportunities for diversification, resilience, and long-term growth. All eyes now turn to the future, as the country moves closer to solidifying its stance in the digital economy.
