Financial Advisors Still Cautious on Bitcoin Despite Growing Interest

Nearly 18 months after spot Bitcoin ETFs launched in the U.S., most financial advisors remain hesitant about recommending crypto, says Gerry O’Shea, Head of Global Market Insights at Hashdex. While a small number of advisors actively explore crypto exposure for their clients, the majority are still in the education phase, slowly conducting due diligence.

According to O’Shea, the conversation among advisors has shifted from basic questions about blockchain and Bitcoin to understanding crypto’s role in portfolios. Should Bitcoin be treated like equities or gold? These are the discussions advisors are now having. Still, skepticism—especially among older advisors—remains strong.

Volatility tops the list of concerns. Despite Bitcoin’s 16-year track record, its steep 20%+ price swings are difficult for many to accept. Environmental concerns, once a dominant issue, have softened. The narrative around proof-of-work has evolved, with some now viewing Bitcoin mining as a driver for renewable energy innovation.

Concerns around criminal use—such as for drugs or sanctions evasion—persist, especially among regulators and financial professionals. However, O’Shea believes perceptions are changing.

He notes two key digital asset themes for 2025: Bitcoin and stablecoins. Although direct exposure to stablecoin growth is challenging, platforms like Ethereum and Solana — which support stablecoin infrastructure — are drawing interest from investors. Stablecoins, he argues, are crypto’s “first killer app” due to their intuitive utility.

O’Shea remains optimistic, predicting broader advisor adoption by year’s end. “Many underestimate how mature this ecosystem is,” he said, emphasizing Bitcoin’s long-term potential in diversified investment strategies.