The SatsMate Stack

Why Can't Financial Advisors Recommend Bitcoin?

Paul SatsMate Season 3 Episode 4

Hi Satsmate Stackers! 

We are living in an age when many traditional finance folks will advise their clients on Bitcoin in an effort to help capture the upside potential in the bull market to come. 

In this podcast, I go over the following topics, but I also try to shed light on the historical aspects of why many advisors have cold feet when recommending this asset. Specifically, I go over the following: 

  • Old-school finance folks tend to be the last to embrace Bitcoin.  
  • Regulatory uncertainty has long been a key reason traditional advisors shy away from recommending Bitcoin.  
  • Its sketchy reputation in the early 2010s—often tied to drug trafficking and illicit activity—created lasting misconceptions.  
  • Bitcoin’s high volatility poses risks for advisors, especially when clients have shorter investment timelines.  
  • For the financially minded, Bitcoin’s valuation doesn’t align with stocks or bonds, leaving many family offices stuck in limbo.  
  • Infrastructure gaps persist, which is why many now prefer Bitcoin exposure through ETFs over holding it directly.  
  • Reputational risks loom large—advisors unfamiliar with Bitcoin might’ve been burned by collapses like Celsius, FTX, or Voyager.  
  • Things are shifting with Trump’s influence, positive executive orders, younger advisors, and clearer regulations paving the way.  
  • Even as advisors warm up, they’ll likely start small, allocating just 1–3% of client portfolios to Bitcoin.

As always, I enjoyed putting this one together - and am consistently looking forward to bitcoin, economics, and finance! 

Best Regards, 

The SatsMate Stack

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Financial Disclaimer: Nothing stated in this video is a recommendation from SatsMate to buy or sell a particular security or asset class. It would help if you wisely considered your tolerance for risk, time horizon, and financial goals before investing. With investing, you risk losing money, always read an invest

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