2024

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Bitcoin

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<p>The world of traditional finance (TradFi) is undergoing a transformation, shaken by the crypto wave that shows no signs of weakening. Recently, a mix of panic and fascination has swept through the higher echelons, as financial players rapidly take positions. The adoption of digital assets like Bitcoin, once reserved for tech-savvy pioneers, is quickly spreading to the most influential financial advisors. The crypto tsunami is hitting hard, and the first cracks are appearing in the citadel of traditional finance.</p>
<h2 id="h-bitcoin-invades-the-personal-portfolios-of-financial-advisors">Bitcoin invades the personal portfolios of financial advisors</h2>
<p>At a recent <strong>financial advisors summit in the United States</strong>, two months ahead of the <a href="https://www.cointribune.com/en/bitcoin-conference-2024-a-historic-turning-point-summary-of-announcements-and-predictions-from-nashville/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Conference 2024 in Nashville</a>, a surprising event left a mark. <a href="https://experts.bitwiseinvestments.com/cio-memos/almost-every-hand-went-up" target="_blank" rel="noopener noreferrer nofollow">Matt Hougan, CIO of Bitwise</a> asked a simple question: “<em>Who owns Bitcoin in their personal portfolio?</em>“</p>
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<p>Two years ago, <strong>barely 20%</strong> of the hands went up timidly. But this year, <strong>more than 70% of advisors</strong> present raised their hands, revealing a massive and accelerated adoption of Bitcoin. This phenomenon is not insignificant.</p>
<p>Financial advisors now seem convinced by <strong>the solidity and appeal of the king of digital assets</strong>. However, paradoxically, few of them are yet integrating it into their clients’ portfolios.</p>
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<p>The reason? <strong>Large financial institutions remain hesitant</strong> and restrictions are still numerous, but this will not last. Hougan reminds us that these professionals often test on themselves first before offering diversification to their clientele.</p>
<ul>
 <li>In 2022, only 20% of advisors owned Bitcoin;</li>
 <li>In 2023, the figure rose to 70%;</li>
 <li>Crypto funds will follow in client portfolios within 6 to 12 months.</li>
</ul>
<p>This sudden enthusiasm, encouraged by the recent <a href="https://www.cointribune.com/en/the-fed-finally-lowers-its-rates-what-will-happen-to-bitcoin/" target="_blank" rel="noopener noreferrer nofollow"><strong>lower interest rates</strong> from the Fed</a> and the <strong>approval of Bitcoin ETFs</strong>, shows that institutions are starting to see this asset, once considered volatile and risky, in a different light.</p>
<h2 id="h-the-crypto-market-conquers-wealthy-clients">The crypto market conquers wealthy clients</h2>
<p>The next step will be the <strong>generalization of cryptos in clients’ portfolios</strong>. “<em>The whales of finance are starting to jump in</em>“, Hougan jokes. And when the biggest fish in the financial sector dive into the crypto pool, the ripples can become devastating for traditional markets.</p>
<p>In a few months, it will be common to see <strong>these advisors offering Bitcoin or other cryptos to wealthy clients</strong>.</p>
<p>This gradual adoption is not without risk. Indeed, cryptos, and in particular Bitcoin (BTC), <strong>still suffer from significant fluctuations</strong>. Between market volatility and still uncertain regulations, investors must prepare for potential waves of instability.</p> 
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<p>Moreover, <strong>the risks of hacking</strong> are indeed present and the security of digital assets remains a major challenge. The crypto market is still fragile and lightly regulated, making <strong>transactions and fund protection uncertain</strong>, especially in the event of a flash crash.</p>
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<p>Despite this, interest remains strong, and financial advisors anticipate a democratization of cryptos among their clients. For the most optimistic, <strong>Bitcoin could even become <a href="https://www.cointribune.com/le-bitcoin-est-une-reserve-de-valeur-fed-ny/" target="_blank" rel="noopener noreferrer nofollow">a store of value</a></strong> in the long term, comparable to gold, suggests the New York Fed.</p>
<p>The time has come for these traditional finance players to embrace the digital revolution while keeping a close eye on market movements.</p>
<p>The great leap of institutional investors into crypto is encouraging, but the potential monopoly of these players could stifle supply. The specter of a <a href="https://www.cointribune.com/en/bitcoin-shortage-on-the-horizon-financial-institutions-are-monopolizing-crypto/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin shortage</a> looms.</p>

70% Of Financial Advisors Converted To Bitcoin – When Will Their Clients Follow?

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