Crypto is erupting into mainstream finance as major advisory firms embrace digital assets, with billions set to flow and 5% allocations becoming the new norm, Bitwise says.
The ‘Big Unlock’ Is Happening—Billions Poised to Shift Across Wealth Portfolios
Bitwise Asset Management’s chief investment officer, Matt Hougan, offered a bullish outlook on crypto adoption within traditional finance this week. Sharing his observations on social media platform X on May 14, Hougan emphasized a significant shift underway in how financial advisors engage with digital assets, particularly through regulated investment vehicles.
He highlighted that large advisory firms are gearing up to enable crypto investments for clients, reflecting an accelerating mainstreaming of crypto within professional wealth management. Hougan stated:
The ‘big unlock’ is happening for financial advisors. I suspect every major advisory firm will have the ability to invest in crypto ETPs by year-end.
According to the Bitwise chief investment officer, the growing institutional acceptance will be accompanied by sizable capital inflows. “The level of interest in crypto is very high. Inflows will be measured in the many billions,” he opined.
Hougan further noted that portfolio allocation strategies are evolving as advisors adjust to changing investor appetites and improved access to digital assets: “5% is the new 1% for portfolio allocations.” This adjustment signals a move toward greater exposure to crypto within diversified investment portfolios, driven by both demand and growing confidence in the asset class.
Institutional interest in bitcoin has grown steadily. In January, Blackrock CEO Larry Fink highlighted this trend at the World Economic Forum in Davos, calling bitcoin a rising global financial asset. He cited a conversation with a sovereign wealth fund considering a 2% to 5% allocation to bitcoin, suggesting widespread adoption at that level could push its value to $500,000–$700,000. Fink described bitcoin as both a growth asset and a macro hedge, particularly useful in regions facing currency devaluation or geopolitical instability.
Shifts in institutional behavior and deeper regulatory engagement with crypto frameworks are also reshaping perceptions. Coinbase CEO Brian Armstrong has recently alluded to the impending inclusion of digital assets in mainstream retirement vehicles. “Crypto is about to be in everyone’s 401k,” Armstrong declared, suggesting that cryptocurrencies may soon become a standard component of long-horizon savings strategies.
