Bitwise CEO Pinpoints Investor Busyness as Crypto’s Final Adoption Hurdle

Bitwise CEO Hunter Horsley has identified a new hurdle in cryptocurrency adoption: busy investors. He stated that while the industry has overcome past obstacles like regulation and access, the primary challenge now is that investors are simply too occupied. In an interview with Wolf Of The All Street, Horsley explained that advisors often report clients not asking about crypto, even at firms that have already approved Bitwise products for over a year.

Horsley emphasized that Bitcoin's price needs to find a balanced sweet spot to encourage adoption. He noted that while rising prices help sales, sudden surges or drops can deter investors. Ideally, the market should see steady, positive performance without extreme volatility. As of Sunday, Bitcoin was trading near $85,200, up 0.5% in 24 hours.

Another trend observed is advisors shifting from self-custody to Exchange-Traded Funds (ETFs). Horsley mentioned that advisors who previously set up clients with spot Bitcoin or Solana are now looking to swap these holdings into ETF shares, a process expected to conclude in the third quarter. He attributed this shift to the desire for simplicity and peace of mind.

On the regulatory front, Horsley commented that the Securities and Exchange Commission's proposed crypto custody framework for registered investment advisors won't significantly alter how advisors incorporate crypto into portfolios. He expects advisors to start utilizing stablecoins, on-chain vaults, and tokenized assets sometime next year.

Bitwise’s NEAR ETF has seen significant traction, attracting over $50 million in net inflows. Horsley views this as a product that bridges AI and crypto, with index products like this expected to grow in popularity among wealth managers. NEAR’s price was up over 3% in 24 hours.