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Financial Advisors Missed the Boat on Surging Crypto Wave, Says Insider
- Most financial advisors resist engaging with crypto, viewing it as unstable compared to traditional assets despite seeing rising demand from clients.
- Jim Crider stands out, advocating Bitcoin allocation despite widespread scepticism among his peers.
- Memecoins are thriving on retail speculation fueled by token generators like pump.fun, creating niche sectors, including AI-driven projects like GOAT and Truth Terminal-inspired tokens.
It’s no surprise that institutions and big money players have driven the Bitcoin (BTC) price to new heights for the last couple of months. With so much money flowing in and charts breaking new all-time highs, why are retail traders sitting this one out?
Well, there are several reasons. Mainly, financial advisors, who often view traditional assets like stocks and commodities as more stable, are reluctant to handle crypto-related requests from clients even though demand is rising.
Can’t Teach an Old Dog New Tricks, They Say
Texas-based certified financial planner Jim Crider contrasts with his peers, who believe Bitcoin is some worthless fad that will fade away, despite major financial firms like BlackRock, VanEck, and others having adopted the crypto asset, causing it to reach new heights in 2024.
Related: As Bitcoin Reaches $93K High, Analysts Say Get Used to ‘Repeated All-Time Highs’
Unlike most financial planners, Crider often recommends that his clients allocate a certain portion of their portfolios to Bitcoin.
I talk with other financial planners all the time—99.99% of them vehemently disagree with me. They think Bitcoin is tulips and Beanie Babies, and absolutely worthless
Jim Crider, CEO & Financial planner Jonathan Barrett of New Jersey-based Barrett Financial Advisors told Decrypt that they are seeing more crypto-related requests than ever as decentralised digital assets become more common.
When it was a budding alternative asset class, many people hadn’t heard of it and were very skeptical. But the idea of a decentralized currency is becoming more and more common, and interest has spiked.
Jonathan Barrett, Barrett Financial Advisors According to Noelle Acheson in his Crypto Is Macro Now newsletter, retail investors are typically late to crypto cycles, suggesting the current one is still in its early stages.
Retail investors on the whole tend to be ‘late adopters,’ motivated by price-related headlines and social interest. We’ll know we’re nearing peak hype when retail is ‘piling in.’
Noelle Acheson, Crypto Is Macro Now People Love Memecoins
While retail traders may not heavily invest in major cryptocurrencies, they tend to have a penchant for memecoins, which now have a market capitalisation of over US$61B (AU$94.2B).
Memecoin trading volume has grown fivefold in 2024, driven by the ease of creating tokens using tools like pump.fun, which automates the process.
This accessibility has sparked a speculative trading boom, giving rise to a niche sector involving AI cults. We’re talking about AI memecoins like GOAT, ZEREBRO, and FARTCOIN.
Yes, you read that right, AI memecoins with a slight air of cultism are becoming extremely popular. These projects are quite experimental and combine philosophic inquiries with the most absurd humour and elements of internet culture, so you’re in for a ride.
Related: Pennsylvania’s New Bitcoin Reserve Bill Mines Interest in Senate as Trump Gets Ready for Office
It all started with Truth Terminal, an AI agent built by Andy Ayrey, a popular technologist and designer. The AI is semi-autonomous and can post on X and even interact with users.
Truth Terminal inspired a new memecoin called GOAT, which now has a US$1B (AU$1.5B) market capitalisation. Talk about insanity.
Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
