Bitwise CIO says consultants see tokenization beyond Bitcoin.

• Tokenization is gaining ground among financial advisors and cryptocurrencies.
• Stablecoins emerge as a highlight in the next crypto cycle.
• Bitcoin shares the spotlight with on-chain financial infrastructure.

Interest from financial advisors in the cryptocurrency market remains high, but the focus of conversations is shifting. According to Matt Hougan, investment director at Bitwise, topics such as asset tokenization and stablecoins have begun to occupy more space in discussions than Bitcoin itself.

The assessment was shared after a series of meetings with professionals in the financial sector. In just one day, Hougan participated in eight sales meetings and spoke with more than 40 consultants. The main insight was that interest in cryptocurrencies remains strong, even during periods of volatility, but now directed towards practical applications of blockchain technology.

"They're eyeing stablecoins and tokenization more than bitcoin," Hougan wrote.

The shift in focus is being closely watched by the market because financial advisors represent an important potential source of capital for the sector. Many investors served by these professionals still have limited exposure to digital assets, which opens up opportunities for new allocations in the coming years.

According to Hougan, previous cryptocurrency growth cycles were driven by a combination of new technologies and new participant groups. After the 2014 bear market, Ethereum gained prominence. After 2018, decentralized finance began to attract attention. More recently, Bitcoin ETFs have contributed to expanding institutional access to the asset.

Now, the executive believes that the next stage could be led by solutions linked to blockchain-based financial infrastructure. These include stablecoins, tokenization of real-world assets, perpetual futures contracts, and other applications geared towards financial markets.

While still considering Bitcoin attractive to investors with a long-term horizon, Hougan noted that recent conversations demonstrate a growing interest in the technological framework that underpins the sector.

The topic has also been discussed by important representatives of the traditional financial market. Among the names mentioned are the chairman of the SEC, Paul Atkins, the CEO of Goldman Sachs, David Solomon, and the CEO of BlackRock, Larry Fink.

According to Hougan, if financial advisors assume a significant role as new buyers in the next bull market, some of the resources could initially be directed towards projects related to tokenization, stablecoins, and on-chain financial infrastructure.

Among the examples mentioned in the conversations are Ethereum, Solana, Canton, Chainlink, Avalanche, Hyperliquid, Figure, Circle, and Coinbase. According to the Bitwise executive, consultants' views on cryptocurrencies have broadened in recent years, encompassing digital payments, capital markets, and tokenized financial products.

“This is very important,” Hougan wrote. “It could also be the factor that leads us to the next bull market.”