Bitcoin’s Hedge Glow Fades: Advisors Now Prioritize Stablecoins Over Crypto’s OG Asset (Bitwise Data Proves It)

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By: Oliver Hawthorne

Bitcoin’s once-dominant narrative as a fiat hedge is losing traction among financial advisors. The shift is sharp—stablecoins and tokenization now top their crypto interests, leaving Bitcoin’s speculative appeal in the dust. This raises questions about how institutional crypto allocation will evolve.

Bitwise’s survey with VettaFi shows 30% of advisors rank stablecoins and tokenization as their top crypto focus. Only 22% see Bitcoin as a hedge against fiat debasement. Another 19% highlight crypto-linked AI. Bitwise CIO Matt Hougan spoke to over 40 advisors on June 10, and their conversations rarely touched Bitcoin’s price. The GENIUS Act of 2025 established a stablecoin regulatory framework, cutting uncertainty for institutions. Bitwise manages over $15 billion in crypto assets for institutional clients.

Advisors are now fixated on practical infrastructure: payments, settlement systems, and real-world asset tokenization. Ethereum and Solana networks are key here, as are stablecoin rails. Circle (USDC issuer) and Coinbase (institutional on-ramp) are frequent topics. The commercial loop is clear: regulatory clarity drives interest in stablecoins, which boosts demand for underlying blockchain tools. Crypto will integrate into traditional finance not as a speculative asset, but as an efficient capital movement tool.

Author bio: Oliver Hawthorne, Principal Correspondent at an international tech review, covers institutional crypto trends and regulatory shifts.