Why Financial Advisors Can No Longer Ignore Crypto Allocation Models
Something fundamental has shifted in wealth management over the past year. Walk into any advisory firm today and you’ll hear the same story: clients aren’t asking if they should own crypto anymore. They’re asking why their advisor hasn’t brought it up yet.
The resistance many financial advisors have maintained has become nearly impossible to justify as 2026 arrives. The landscape has changed dramatically, and pretending otherwise might cost advisors more than just uncomfortable conversations.
What Clients Are Actually Doing
Here’s what should keep advisors up at night. Throughout 2025, crypto ownership among retail investors reached levels that can no longer be dismissed as a fringe phenomenon. Younger investors in particular have embraced digital assets, with many treating Bitcoin (CRYPTO: BTC) and other cryptocurrencies as permanent portfolio fixtures rather than speculative trades.
The real issue isn’t simply that clients own crypto. It’s that they’re buying it elsewhere. A significant portion of advisory clients maintain cryptocurrency positions at exchanges like Coinbase Global Inc. (NASDAQ:COIN) and other platforms, completely outside their advisor’s view. These held away assets create blind spots in what should be comprehensive financial planning.
When clients hold substantial wealth in accounts their advisor can’t see, that’s more than an operational inconvenience. It’s a relationship problem. Advisors can’t properly assess risk exposure, coordinate tax strategies, or ensure portfolios remain aligned with client goals when major asset holdings exist off the books.
The shift among advisors themselves reveals where the industry is heading. Throughout 2025, roughly one in five advisors integrated crypto into client portfolios, double the rate from just two years earlier. Among those who took the plunge in 2025, nearly all have indicated plans to maintain or expand their crypto allocations going forward.
The 2024 election accelerated this momentum considerably. The outcome signaled a shift toward friendlier regulatory treatment of digital assets, giving hesitant advisors confidence that the compliance landscape would improve. Throughout 2025, that prediction largely bore out as federal frameworks emerged and custody rules gained clarity.
What Changed To Make This Possible
For years, advisors had a ready excuse. Regulation was unclear, custody was messy, and compliance departments shut down every crypto conversation before it started. That world doesn’t exist …
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