Almost a year and a half after Bitcoin
The stock market negotiated funds have been unleashed on the American financial system, the financial advisers are still trying to take place around the crypto.
It is according to Gerry O’Shea, manager of global market information at Crypto Asset Manager hashdex.
“The overwhelming majority of financial advisers in particular do not recommend an allocation to bitcoin or crypto to their customers at this stage,” O’Shea told Coindesk in an interview.
“Of course, there are some who were very proactive to think of this space and to make an exhibition there, but it is really a small subset of the global market,” he added. “Most of what we have done in recent years is based on education.”
The advisers are receptive to all of this, said O’Shea – it is simply that reasonable diligence takes some time and that they move relatively slowly. In other words, it is still very early in terms of advisers recommending an cryptography exhibition to their customers.
Their questions have been beyond trying to understand what Bitcoin or Blockchain is, and are now focusing more on the role that digital assets can play in someone’s wallet, according to O’Shea. Should it be considered as an equity allowance? Should he replace gold? General skepticism towards the asset class as a whole tends to be confined to the older generations of financial advisers.
At the top of the list of concerns is volatility. Advisers may be aware that Bitcoin is an asset in development with a 16-year balance sheet, but ultimately, they may still have trouble enduring regular decreases of 20% or more money.
The anxieties concerning the energy consumption of Bitcoin – which were large enough in 2021 so that Tesla ceases to receive Bitcoin payments – withdrawn somewhat in second place, said O’Shea. In fact, the story about the proof of work seems to have changed significantly in recent months, he noted, with people increasingly appreciating that Bitcoin exploitation can help develop renewable energy projects.
Coming third is crime. Bitcoin is still often seen, even by members of the congress, such as a payment system that facilitates drug traffickers and sanctions. Financial advisers are still raising this as a concern, said O’Shea.
For him, there are two main themes in 2025 with regard to digital assets: Bitcoin and Stablecoins. And although it is not as simple to expose yourself to the growth of the Stablescoin market, he said that intelligent contract platforms such as Ethereum and Solana – which provide the infrastructure to Stablecoins to function – should become interesting for investors.
“There is certainly real use for these platforms. Many people call stable parts like the first Killer application, right? Because it is something that people can understand intuitively,” said O’Shea.
In any case, hesitation around Bitcoin will not last forever, he predicted. “These people underestimate the development of this ecosystem and the way in which an allocation beneficial to this asset class can be longer term,” he said. “Even by the end of the year, there will be many more that will appreciate this fact.”
