Advisors at some of the largest financial institutions are more interested in stablecoins and tokenization than in Bitcoin, which could lend a hand lift the cryptocurrency out of its current crisis, said Matt Hougan, Bitwise’s chief investment officer.
Hougan said in note on Wednesday that he had recently spoken to more than 40 advisors who were “still interested in cryptocurrencies” but “today they are more interested in stablecoins and tokenization than they are in Bitcoin.”
“It’s been quite difficult to get in touch with bitcoin advisors this week,” he said. “In conversation after conversation, they expressed much greater curiosity about the real-world applications of cryptocurrencies that are rapidly changing everything from capital markets to global payments.”
Stablecoins and tokenization have drawn interest from Wall Street recently as Bitcoin (BTC) has struggled to maintain momentum, suffering a nearly 30% decline this year to $62,500.
Stablecoin issuer Circle saw a lively IPO in June 2025, with its shares quickly rising to a high of $240 from its debut price of $31. Since then, it has faced a broader setback on cryptocurrency exchanges, closing at just below $79 on Wednesday.
Tokenization will also augment as the U.S. Securities and Exchange Commission reportedly plans to allow tokenized stock trading, which could augment confidence among classic investors and spur investment.
“It’s hard to turn on CNBC and not hear someone like SEC Chairman Paul Atkins, Goldman Sachs CEO David Solomon or BlackRock CEO Larry Fink talking about stablecoins and tokenization,” Hougan said. “Investors want to be part of it.”
Matt Hougan, who was featured in the January podcast, says advisors are becoming less interested in Bitcoin. Source: YouTube
He said interest in these technologies could be what’s pulling cryptocurrencies into a bull market that in the past has been triggered by “new product breakthroughs and new types of investors.”
Related: Bitcoin may act as a “canary in the coal mine” as risk pressure spreads
The “biggest hope,” according to Hougan, is that financial advisors and institutional investors are creating a novel class of cryptocurrency investments, and their money will likely go into stablecoin and tokenization investments.
He said Ethereum, Solana, Canton, Chainlink and Avalanche were mentioned during his conversations, as well as trading platform Hyperliquid and crypto companies Figura, Circle and Coinbase.
Coinbase and other cryptocurrency exchanges have expanded into business lines beyond cryptocurrency trading in an attempt to capitalize on investor interest in blockchain-connected services.
Many exchanges have begun offering tokenized shares, albeit outside the United States, which have gained popularity as investors seek to gain exposure to popular stocks and highly popular public offerings such as SpaceX’s planned debut on Friday.
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