Crypto’s Future Looks Brighter, Thanks to Trump?
It seems like the cryptocurrency world is buzzing with optimism following the results of the 2024 US presidential election. According to a recent survey by Bitwise, more than half of the wealth advisers in the United States are now more likely to invest in cryptocurrencies, specifically due to Donald Trump’s victory in the race for the White House. With the anticipation of a more crypto-friendly regulatory environment under Trump’s leadership, advisers are beginning to seriously consider digital assets as part of their investment strategies.
The Numbers Speak for Themselves
Between November 14 and December 20, 2024, Bitwise surveyed 430 financial advisers across the US. The results? A resounding 56% of advisers said that Trump’s election made them more inclined to consider investing in crypto this year. This shift in attitude highlights a significant moment in the world of finance, as more wealth managers recognize the growing importance and potential of cryptocurrency in today’s financial landscape.
While it may seem like a surprising shift for some, those in the crypto space were already hopeful that Trump’s administration would usher in a more supportive regulatory framework for digital assets. In fact, crypto enthusiasts like Jack Mallers, founder of Strike, have speculated that Trump could take bold steps, possibly issuing an executive order to designate Bitcoin as a US reserve asset right from day one. While that remains to be seen, the survey results indicate that many advisers are cautiously optimistic.
Crypto Exposure on the Rise Among Advisers
For those already investing in crypto, the mood is even more positive. A staggering 99% of advisers who are currently involved in crypto say they plan to either maintain or increase their crypto exposure this year. This speaks to the growing belief in the long-term potential of digital currencies. It’s not just the advisers who are excited—clients are getting more involved too. A similar percentage of advisers reported that their clients have started asking more questions about crypto investments over the past year.
Bitwise’s Chief Investment Officer, Matt Hougan, summed it up nicely: “Advisers are awakening to crypto’s potential like never before and allocating like never before.” This is a clear sign that the industry is beginning to embrace crypto as a legitimate investment class, not just a speculative asset.
A Massive Opportunity for Advisers
There’s also an important trend emerging: more and more clients are already investing in cryptocurrencies on their own. According to the survey, 71% of advisers reported that their clients are independently holding crypto assets. While this presents an opportunity for advisers to step in and help clients integrate crypto into their broader wealth management plans, it also signals that traditional wealth management services are facing increased competition from decentralized finance (DeFi) and self-directed crypto investing.
Bitwise sees this as a massive business opportunity. Advisers who can help clients navigate the complexities of crypto investment while providing tailored advice could stand to gain a loyal customer base. As the cryptocurrency market continues to mature, the demand for professional guidance on integrating crypto into portfolios is only likely to increase.
Access to Crypto Still a Major Hurdle
Despite the growing interest in crypto, Bitwise’s survey also points out one major obstacle: access. A significant 65% of wealth advisers still can’t directly purchase cryptocurrencies in client accounts. This lack of access remains a major barrier to crypto adoption among traditional financial advisers, who are often limited by the infrastructure of the firms they work with. This gap represents a critical area for innovation—if firms can develop easier, more seamless ways for advisers to integrate crypto into client portfolios, the floodgates could open.
Bitcoin’s Volatility: A Bump in the Road?
Of course, the crypto market is far from stable. Bitcoin’s price has been experiencing significant fluctuations, dropping to $92,500 on January 8, 2025, after briefly touching the $100,000 mark earlier in the month. These swings in value continue to make crypto a volatile asset for advisers to navigate. However, many seem to view this volatility as part of the game, with the potential for massive returns outweighing the risks.
Moreover, the growing reserves of Bitcoin held by US-based entities compared to offshore entities highlight a larger trend of institutional adoption. According to recent data from CryptoQuant, US-based Bitcoin reserves reached an all-time high as of January 9, 2025, with reserves in the US now 65% greater than those held by non-US entities. This shows that US institutions and investors are increasingly accumulating Bitcoin, which could signal more bullish sentiment for the cryptocurrency market.
Looking Ahead: The Future of Crypto Investment
As the US enters a new political era with Trump in office, the outlook for crypto appears more positive than ever. Financial advisers are becoming more comfortable with the idea of incorporating crypto into their clients’ portfolios, and with new regulatory clarity potentially on the horizon, the path forward looks clearer.
While access remains a barrier for many, the growing demand for crypto and the increasing number of clients asking about it will likely push advisers and firms to find innovative ways to incorporate digital assets into their investment strategies. As more wealth managers dip their toes into the crypto market, expect to see even more engagement and interest in digital currencies over the coming year.
In short, the crypto revolution isn’t slowing down. If anything, it’s gaining momentum—especially with a new administration in the White House that’s seemingly on board with embracing the future of finance.
