Financial advisers at major institutions are increasingly prioritizing stablecoins and tokenization over Bitcoin, according to Bitwise investment chief Matt Hougan. The shift signals a potential new catalyst for crypto market growth as institutional interest moves toward real-world blockchain applications rather than pure digital assets.
Hougan revealed in a Wednesday note that he recently engaged with more than 40 advisers who remained interested in cryptocurrency but showed significantly greater enthusiasm for stablecoins and tokenization. “It was pretty hard to engage with advisors on Bitcoin this week,” Hougan stated. “In call after call, they expressed much more curiosity over the real-world applications of crypto that are quickly reshaping everything from capital markets to global payments.”
The timing of this shift comes as Bitcoin has struggled to maintain momentum, trading down nearly 30% year-to-date to $62,500. This follows a pattern seen in related coverage of how central banks are recognizing stablecoins as legitimate financial instruments, suggesting broader institutional acceptance of tokenized assets.
Stablecoins have captured Wall Street’s attention in recent months, particularly following Circle’s initial public offering in June 2025. The stablecoin issuer’s stock initially rallied to $240 from its $31 debut price, though it has since retreated to just under $79 as crypto stocks faced broader market pressures. Despite the pullback, institutional interest in the sector remains robust.
See also: StablR Exploit Drains $2.8M as Euro and USD Stablecoins Depeg Following Private Key Compromise
Tokenization is poised for significant expansion following reports that the U.S. Securities and Exchange Commission plans to permit tokenized stock trading. This regulatory development could provide traditional investors with the confidence needed to increase exposure to blockchain-based securities. “It’s hard to turn on CNBC and not hear someone like SEC Chair Paul Atkins or Goldman Sachs CEO David Solomon or BlackRock CEO Larry Fink talking about stablecoins and tokenization,” Hougan noted. “Investors want to be a part of that.”
During his conversations with advisers, Hougan identified several blockchain networks and platforms generating institutional interest. Ethereum, Solana, Chainlink, and Avalanche were frequently mentioned, alongside trading platform Hyperliquid and crypto companies Figure, Circle, and Coinbase. The diversity of platforms discussed suggests advisers are evaluating multiple infrastructure options for tokenization and stablecoin deployment.
Crypto exchanges have responded to this institutional demand by expanding beyond traditional trading services. Coinbase and other platforms have begun offering tokenized stocks, with many already operating such services outside the United States. These offerings have grown increasingly popular as investors seek exposure to high-profile stocks and anticipated public offerings, including SpaceX’s planned market debut.
See also: Bitwise Says Hyperliquid Token HYPE ‘Most Mispriced’ Crypto Despite 77% YTD Gains
Hougan believes the influx of financial advisers and institutional capital into stablecoins and tokenization could represent the catalyst needed to trigger a sustained bull market. Historically, crypto market rallies have been driven by “new product breakthroughs and new types of investors,” he explained. The current environment appears to satisfy both conditions, with institutional-grade products and a new class of sophisticated investors entering the space.
The shift away from Bitcoin among advisers does not necessarily indicate declining interest in cryptocurrency broadly. Rather, it reflects a maturation of institutional crypto investment strategies, with focus moving toward assets and applications with clearer regulatory pathways and immediate utility in traditional finance. According to CoinGecko, tokenized real-world assets have seen substantial growth despite broader market volatility.
Hougan’s observations suggest that the next phase of crypto adoption may be driven less by retail enthusiasm for digital currencies and more by institutional deployment of blockchain infrastructure for financial services. This represents a fundamental shift in how the industry attracts capital and builds sustainable growth. As regulatory frameworks continue to clarify and institutional products mature, advisers appear increasingly confident in recommending stablecoin and tokenization exposure to their clients.
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