TradFi Advisors Now Favor Stablecoins Over Bitcoin: Bitwise CIO
Financial advisors are shifting interest from Bitcoin to stablecoins and tokenization amid BTC's slump, according to Bitwise's Matt Hougan. He sees this as the potential catalyst for the next crypto bull market, driven by real-world applications and growing institutional adoption on Wall Street.
Quick Take
Bitwise CIO says advisors are more curious about stablecoins and tokenization than Bitcoin.
BTC is down nearly 30% YTD, while Circle IPO and SEC tokenization plans fuel interest.
Hougan believes this shift could pull crypto into a new bull market.
Ethereum, Solana, and other platforms mentioned in advisor conversations.
Market Impact Analysis
BullishInstitutional advisor interest in stablecoins and tokenization, supported by regulatory developments, could attract significant capital inflows.
Speculation Analysis
Key Takeaways
- Advisors turn to stablecoins: Bitwise CIO Matt Hougan says 40+ financial advisors showed more interest in stablecoins and tokenization than Bitcoin during recent conversations.
- Bitcoin struggles: BTC is down nearly 30% YTD to $62,500, reducing its appeal among institutional allocators.
- Catalysts emerge: Circle's IPO and SEC plans for tokenized stock trading are driving Wall Street's focus toward real-world blockchain applications.
- Bull market trigger: Hougan believes this new investor class and product breakthroughs could pull crypto into its next bull run.
- Platforms in focus: Ethereum, Solana, Chainlink, Avalanche, and companies like Circle and Coinbase were highlighted in discussions.
What Happened
Financial advisors at major institutions are shifting focus from Bitcoin to stablecoins and tokenization, according to Bitwise CIO Matt Hougan. After speaking with over 40 advisors, he noted a clear pivot toward real-world blockchain applications. Bitcoin's nearly 30% year-to-date slump to $62,500 has cooled enthusiasm, while Circle's explosive IPO and potential SEC approval for tokenized stock trading have captured attention. This marks a significant sentiment change among traditional allocators, who now see more near-term opportunity in stablecoin infrastructure and asset tokenization than in BTC.
The Numbers
Bitcoin trades at $62,500, down nearly 30% YTD. Circle debuted in June 2025 at $31, surged to $240, and closed around $79 on Wednesday. Hougan's conversations with 40+ advisors revealed that Ethereum, Solana, Chainlink, and Avalanche were frequently mentioned, signaling broad ecosystem interest. The SEC's reported plan to allow tokenized stock trading could further validate these trends, attracting institutional capital.
Why It Happened
Bitcoin's prolonged weakness has reduced its near-term appeal, while stablecoins and tokenization offer clearer utility. Circle's IPO proved strong demand for regulated stablecoin issuers, and SEC Chair Paul Atkins' openness to tokenized equities adds legitimacy. Wall Street leaders like BlackRock's Larry Fink and Goldman's David Solomon are publicly endorsing tokenization, accelerating advisor interest. As Hougan noted, "Investors want to be a part of that"—a stark contrast to the harder-to-engage BTC narrative.
Broader Impact
This advisor pivot could jumpstart institutional flows into tokenized assets and stablecoins, potentially triggering a new crypto bull market. Layer-1 networks like Ethereum, Solana, and Avalanche may benefit from infrastructure development. Exchanges such as Coinbase expanding into tokenized stocks signal a broader industry shift toward blockchain-based finance, reshaping capital markets and global payments.
What to Watch Next
- SEC rulings on tokenized stock trading—approval could unlock significant capital inflows.
- Advisor allocations into stablecoin and tokenization funds as a leading indicator for the next rally.
- Circle's stock performance as a real-time barometer of stablecoin sentiment.
This article is for informational purposes only and does not constitute financial advice.
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