Advisors to some of the biggest financial institutions are more interested in stablecoins and tokenization than Bitcoin, which could help pull the crypto out of its current slump, Bitwise chief investment officer Matt Hougan said.
Hougan said ua note on Wednesday that he recently spoke with more than 40 advisors who are “still interested in crypto” but are “more interested in stablecoins and tokenization than Bitcoin these days.”
“It’s been quite difficult to work with Bitcoin advisors this week,” he said. “In call after call, they expressed much more curiosity about the real-world applications of crypto, which are rapidly reshaping everything from capital markets to global payments.”
Stablecoins and tokenization have captured Wall Street’s interest recently, while Bitcoin (BTC) has struggled to maintain momentum, trading down nearly 30% this year to $62,500.
Stablecoin issuer Circle experienced a tumultuous initial public offering in June 2025, with its shares quickly rising to a peak of $240 from an initial price of $31. It has since struggled amid a broader slide in crypto stocks, closing at just under $79 on Wednesday.
Tokenization is also set for a boost as the US Securities and Exchange Commission reportedly plans to allow tokenized stocks to be traded, which could give traditional investors confidence and spur investment.
“It’s hard to turn on CNBC and not hear someone like SEC Chairman Paul Atkins or Goldman Sachs CEO David Solomon or BlackRock CEO Larry Fink talking about stablecoins and tokenization,” Hougan said. “Investors want to be a part of that.”
Matt Hougan, featured on a podcast in January, says advisors are becoming less interested in Bitcoin. Source: YouTube
He said interest in the technology could be what’s pulling crypto into a bull market, which has historically been fueled by “new product breakthroughs and new types of investors.”
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The “biggest hope,” according to Hougan, is that financial advisors and institutional investors form a new class of crypto investors, and their money is likely to flow into stablecoin and tokenization investments.
He said Ethereum, Solana, Canton, Chainlink and Avalanche were mentioned during his talks, along with trading platform Hyperliquid and crypto companies Figure, Circle and Coinbase.
Coinbase and other crypto exchanges are expanding into lines of business beyond crypto trading in an attempt to capitalize on investor interest in blockchain-related services.
Many exchanges have begun offering tokenized shares, albeit outside the US, which have become more popular as investors seek exposure to popular stocks and heavily hyped IPOs, such as SpaceX’s planned unveiling on Friday.
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