Advisors Favor Stablecoins and Tokenization Over Bitcoin

Financial advisors representing major institutions are increasingly focusing on the practical applications of blockchain technology, such as stablecoins and asset tokenization, rather than on Bitcoin as a primary investment thesis. This shift in institutional interest was highlighted by Matt Hougan, chief investment officer of asset manager Bitwise, following a series of meetings with more than 40 advisors this week.

Hougan described the conversations in a memo, noting that engaging advisors on Bitcoin was difficult, even with its price hovering around $62,500, down nearly 30% year-to-date. Instead, discussions consistently centered on the real-world utility of crypto in areas like payments, capital markets infrastructure, and the tokenization of real-world assets. Hougan observed that the narrative around crypto in mainstream financial media and among senior policymakers and executives now frequently highlights stablecoins and tokenization.

This pivot is supported by broader market and regulatory developments. Stablecoin issuer Circle conducted a high-profile initial public offering in June 2025, with its stock price surging from a debut of $31 to a peak near $240 before...