While advisors are still interested in crypto despite the bear market, Hougan said discussions are now more focused on blockchain's practical applications in payments and capital markets. He added that if financial advisors and institutional investors become a major source of future crypto inflows, capital could initially flow toward assets linked to stablecoins and tokenization, including networks like Ethereum, Solana, Chainlink, Avalanche, and Canton.
Stablecoins and Tokenization Overtake Bitcoin
Financial advisors are showing more interest in stablecoins and tokenization, with some now viewing these sectors as more compelling opportunities than Bitcoin. This is according to Bitwise Chief Investment Officer Matt Hougan.
The observation follows a week of meetings with more than 40 financial advisors, during which Hougan found that conversations were more centered on the practical applications of blockchain technology rather than Bitcoin itself.
(Source: Bitwise)
Hougan revealed that he participated in eight sales calls in a single day and noticed a consistent trend across advisory teams. While advisors are still interested in cryptocurrency as an asset class despite the ongoing bear market, their focus is shifting toward stablecoins and tokenization. According to Hougan, these areas are attracting attention because they represent tangible use cases that are already gaining traction across the financial industry.
Hougan is still optimistic about Bitcoin’s long-term prospects. He described Bitcoin’s current price above $60,000 as attractive for long-term investors and explained that the asset has historically led the cryptocurrency market out of previous bear markets due to its size, liquidity, and established position within the industry. However, he said advisors seemed more interested in understanding how blockchain technology is being integrated into payments, capital markets, and other financial services.
Hougan believes there are two primary reasons behind the trend. First, concerns about fiat currency debasement have become less prominent among investors than they were in previous years. As a result, Bitcoin’s role as a hedge against monetary expansion is receiving less attention.
Second, stablecoins and tokenization have become major discussion points among influential leaders in finance and regulation. Executives and policymakers in traditional finance noticed the potential of blockchain-based financial infrastructure, bringing these themes into the mainstream investment conversation.
Despite the market downturn, Hougan said the meetings strengthened his belief that interest in digital assets is still strong. He argued that every major crypto bull market has historically been driven by a combination of new products and new groups of investors entering the space. Previous cycles were fueled by developments like Ethereum’s emergence, the rise of decentralized finance, the influx of retail investors during the pandemic, and the launch of spot Bitcoin exchange-traded funds.
Looking ahead, Hougan expects the next growth phase of the industry to be driven by products like stablecoins, tokenization platforms, perpetual futures, and other real-world blockchain applications. However, he made it clear that a sustained recovery will also require participation from new investors.
If these investors become a driver of crypto inflows, Hougan suggested that capital may initially flow toward projects connected to stablecoins and tokenization rather than directly into Bitcoin. Among the assets and networks that generated interest during his meetings were Ethereum, Solana, Canton, Chainlink, and Avalanche. He also mentioned trading-focused platforms like Hyperliquid.
