Bitwise CEO Points to Busy Investors as Crypto's Final Adoption Hurdle

Bitwise CEO Hunter Horsley has identified a new major hurdle for cryptocurrency adoption: busy investors. According to Horsley, advisors are increasingly moving clients from self-custodied Bitcoin and Solana into ETFs as simplicity and peace of mind take priority. He noted that while regulation and access were once the primary barriers, investors' lack of time is now the 'final boss' standing in the way of broader crypto adoption.

Horsley emphasized the importance of Bitcoin's price rising steadily rather than experiencing extreme volatility. A balanced market, he argued, is more conducive to crypto adoption. As of Sunday, Bitcoin traded near $85,200, up 0.5% in the last 24 hours. He also highlighted that Bitwise’s NEAR ETF (NRR) has attracted more than $50 million in net inflows, positioning index products as a bridge between AI and crypto.

Advisors are now shifting from setting up clients with spot Bitcoin or Solana through crypto custodians to swapping these holdings into ETF shares. This trend is expected to continue into the third quarter. Horsley also touched on regulation, stating that the SEC's proposed crypto custody framework for registered investment advisors doesn't significantly alter how advisors add crypto to portfolios but could open doors for stablecoins and tokenized assets in the future.

On the sentiment front, retail sentiment around Bitcoin remained in the 'bearish' zone, while NEAR's sentiment dropped to 'neutral' over the past day. Horsley believes the story of index products is just beginning, driven by wealth managers' growing interest.