For decades, I watched a steady stream of “next big things” move through our industry for alpha generation and diversification. Master Limited Partnerships promised yield and tax advantages. Later, ESG themes and cannabis investments captured headlines as the next frontier. Each opportunity arrived with a mix of hype and scrutiny.
Then came the Bitcoin hype in 2021, surging from under $30,000 in January to nearly $69,000 by November. The headlines were loud, and the conversations louder. Industry conferences began adding crypto panels. Social media was flooded with a new generation of investors with crypto content, amplifying both enthusiasm and confusion. What once felt fringe started to look like a permanent fixture in our industry, and the tone shifted from outright dismissal to measured curiosity.
Then, I truly began exploring Bitcoin as a potential alternative investment. Bitcoin, by contrast, offered something different: accessibility, liquidity, and a simple entry point that didn’t require million-dollar minimums or insider connections. Many advisors, myself included, remained skeptical. We were trained to identify risks, not chase headlines. And as RIA owners, we couldn’t afford to gamble on hype.
At 17 years old, Bitcoin is a teenager with a modest track record. Yet, this digital asset is still new and unpredictable to many of us. Here are some steps advisors can take as due diligence before adding it to client allocations:
Education Before Allocation
Whenever a new asset class emerges, education must come before allocation. As advisors, we must understand it fully before guiding clients. Education turns hype into insight—those who lean in now will be best positioned to lead the conversations clients already have elsewhere.
Education starts with the basics for some: children’s books like Decoding Crypto with Henri & Hodler by Henri Arslanian and Michael Dotsikas simplify digital money into stories anyone can grasp. For a deeper dive, more technical works such as DeFi and the Future of Finance by Ashwin Ramachandran, Campbell Harvey, and Joey Santoro explore how decentralized finance may reshape markets.
For those who prefer structured learning, Digital Assets Council of Financial Professionals (DACFP) founded by Rick Edelman, offers courses and certifications explicitly designed for advisors. Beyond formal study, engage industry leader, “Crypto King” Tyrone Ross, Turnqey Labs co-founder; attend crypto sessions at FinServ conferences; form your own peer study group; and explore video series like the Coinshares Advisor Educational Series that I participated in developing. Once that foundation is built, only then can we thoughtfully consider allocation.
Education to Exposure
As advisors, we’re always tested to see if we’ll eat our own cooking. In the height of the 2021 Bitcoin hype, I opened a Coinbase account with a small amount of “play money” to test the waters. If I wasn’t willing to take risks myself, why should I invite my clients to? While my individual holdings represent winners and losers, the exercise helped me step into the ecosystem firsthand to understand both the promise and the pitfalls better.
Fast forward to today, and there are more options than holding individual digital assets in a cold wallet or an exchange like Coinbase. Institutional players are building products around Bitcoin, integrating it into client platforms, and signaling to advisors and investors that this asset class is here to stay. Advisors can buy Bitcoin ETFs directly through their existing custodial platforms, just as they would any ETF. Bitcoin exposure has moved from fringe exchanges to the same trusted infrastructure advisors already use to build portfolios. With recent SEC approvals, more mainstream offerings are expected, reflecting how legacy firms adapt to meet growing demand, especially from younger investors to ultra-high-net-worth households.
Allocation Decision
When the advisor has moved from education to exposure, implementing a new asset class deserves a narrative that aligns with the advisor’s philosophy, expertise and commitment to serving client goals well. Framing that narrative requires discipline and clarity. Some questions for consideration include:
What problem does this asset class solve? Is it an inflation hedge, a diversifier or a growth asset?
Does it support the way we manage risk, growth and client behavior?
How does it historically correlate with or not with existing asset classes?
What are its tax implications and reporting considerations?
By systematically working through these questions, advisors can ensure that adding Bitcoin is a deliberate, values-driven decision.
While Bitcoin is a reasonably new entrant, it has grown from fringe curiosity to a serious consideration in modern portfolio construction, if still volatile. For advisors, the opportunity is to lead with education, test exposure personally, and implement allocations with humility and discipline. By approaching Bitcoin through a framework of clarity, client alignment, and fiduciary care, we can give this digital asset a thoughtful seat at the table without compromising the principles that define our profession.
