Financial advisors from major financial institutions are shifting their focus from Bitcoin to stablecoins and tokenization.
Matt Hougan, Chief Investment Officer at Bitwise Asset Management, said in a conversation with more than 40 financial advisors that people are still interested in crypto. But they are more interested in stablecoins and tokenization than they are in Bitcoin.
In his blog post, Hougan said he discussed with advisory teams that collectively managed more than $175 trillion. He also added that the conversations revealed a broader change in how traditional finance viewed digital assets. He believed that it had the potential to shape the next stage of crypto market growth.
Matt Hougan said that it was difficult for him to engage with his clients on Bitcoin. They were curious about the practical utilities of crypto and cross-border settlements.
Stablecoins and Tokenization Have Captured Investor Interest
According to Matt Hougan, the advent of new technologies and the arrival of new investor groups had triggered crypto recoveries. He provided an example of the 2014 market crash after the hack and bankruptcy of Mt. Gox. When Ethereum launched its ICO in 2014 and its network in 2015, it led to an ICO boom in 2017.
Another example is the crypto winter of 2018, when ICOs declined and the regulatory crackdowns increased. The introduction of DeFi protocols revived the market again.
Currently, the broader crypto market is facing a major downturn. Hougan said that similar technological developments could drive the market recovery, such as diversifying blockchain use cases and participation from financial advisors and institutional investors.
He stated that the attention has shifted from Bitcoin. Stablecoins, tokenization, perpetual futures, and other real-world blockchain applications would gain momentum in the upcoming years.
Hougan pointed out that despite significant interest, institutional investors face several obstacles, such as regulatory uncertainties and infrastructure disparities, that prevent widespread crypto adoption. The continued interest could support sustained capital inflows.
Hougan Argues Bitcoin No Longer Leading Market Recoveries
Historically, Bitcoin has led crypto market recoveries due to its established liquidity, structural security, and regulatory clarity. That is no longer the case as stablecoins and tokenization have taken center stage across the financial industry. Major firms and regulatory institutions have been discussing their potential for a while now.
Popular crypto figures like SEC Chair Paul Atkins, Goldman Sachs CEO David Solomon, and BlackRock CEO Larry Fink have discussed the potential of stablecoins and tokenization in recent months.
Stablecoins and Tokenization Sparked the Interest of Wall Street
Stablecoins and tokenization have recently come to Wall Street’s radar, as Bitcoin (BTC) has struggled since the beginning of 2026. It has been trading downward by almost 30%, currently trading near $66,715.
Circle, the issuer of the popular stablecoin USDC, went public on June 5, 2025. Its stock surged rapidly, and demand was so high that Circle upsized its offering to $31 per share. As the broader crypto market took a hit, the price fell to $79, which is still the double of its initial IPO price.
As for tokenization, the US Securities and Exchange Commission is planning to allow tokenized stock trading, which could boost investor confidence and drive institutional interest.
Moreover, popular crypto exchanges like Coinbase and others have been expanding beyond crypto trading, focusing on blockchain-linked services. During the conversation, Ethereum, Solana, Canton, Chainlink, and Avalanche were also discussed.