Bitwise CEO says busy investors now main barrier to crypto adoption

Financial advisors cite lack of client demand

Hunter Horsley explained that earlier obstacles, such as a lack of exchanges and qualified custodians, are largely resolved. He noted that many advisors now report their clients simply are not asking about crypto, despite their firms having granted access to Bitwise products more than a year ago. According to Horsley, even some advisors at major companies remain unaware they have the green light to offer Bitcoin to clients.

He described this situation as difficult to comprehend, given the industry’s progress in infrastructure and accessibility. After years spent removing regulatory and technical hurdles, investor attention and demand have become the primary limiting factors for further growth.

Horsley emphasized, “Crypto has met the final boss of reasons people avoid acting—they’re just busy.”

Advisors who previously enabled direct exposure to spot Bitcoin or Solana through custodians are now preparing to transfer those holdings into exchange-traded fund (ETF) shares. Horsley expects these moves to accelerate in the third quarter as investors seek more straightforward and secure investment options. He remarked that simplicity and peace of mind are now top priorities for clients.

Steady price gains seen as key for broader adoption

Horsley believes Bitcoin’s price performance is crucial for continued adoption. He expressed that gradual price increases are more beneficial than sharp declines or sudden rallies. According to him, slow and steady gains help boost Bitwise’s sales, while significant price spikes or drops could actually dampen investor confidence and halt inflows.

If prices fall, many investors wait for a potential further decline before re-entering the market. On the other hand, a sudden surge to $150,000 in Bitcoin before October ends would make many cautious, fearing excessive market exuberance. Horsley characterized the desirable scenario as, “positive price performance—not too slow, not too fast, and not too high too quickly.”

“A balanced market is more conducive to adoption than excessive volatility,” Horsley pointed out.

On Sunday, Bitcoin traded near $85,200, with a modest 0.5% increase over the previous 24 hours. However, retail interest appeared subdued, with Stocktwits data showing sentiment remained negative and discussion volume dropped below typical levels.

Regulatory clarity and Bitwise NEAR ETF flows

Addressing regulatory issues, Horsley acknowledged the proposed Clarity legislation but stated that clients and institutional partners are mostly moving forward regardless of its status. He suggested that the need for additional guidance has decreased as regulations such as the GENIUS Act provide a strong foundation for crypto oversight in the US.

Horsley added that the US Securities and Exchange Commission’s new custody framework would enable financial advisors to offer exposure not only to cryptocurrencies, but also to stablecoins, on-chain vaults, and tokenized assets. These developments are expected to broaden the slate of digital products available to investors in the coming year.

Bitwise, an asset management firm specializing in crypto index and ETF offerings, recently launched its NEAR ETF (NRR) on the New York Stock Exchange in late September. Horsley reported that net inflows for this product have already exceeded $50 million, reflecting steady institutional interest.

He highlighted that NEAR sits at the intersection of artificial intelligence (AI) and blockchain technology, although he noted that index products like NEAR’s ETF have so far trailed single-asset funds in growth. NEAR’s market price increased by more than 3% over the past day.

Mini dictionary: GENIUS Act, a US legislative framework providing regulatory standards for stablecoin issuers and digital asset oversight.