MW Financial advisers used to say no to bitcoin. Now they're saying maybe - but with a catch.
By Morey Stettner
Crypto-curious clients are forcing wealth managers to rethink their opposition. Many use a 5% rule to manage the risk.
Financial advisers generally have viewed bitcoin (BTCUSD) and other crypto as a bad idea. That's changing, but many advisers still view digital assets as speculation, not investment. They point out that, because crypto doesn't generate income and has no earnings, it doesn't provide the benefits stockholders get and so is inappropriate for most individuals.
Yet advisers increasingly are willing to accommodate clients who are crypto enthusiasts. Some investors, especially younger professionals, already dabble in crypto before they seek an adviser. Financial planners who brush off crypto and reject it outright risk alienating these potential clients.
"I'd rather meet them where they are and fold it into an explicit risk budget than pretend it doesn't exist," said Patrick Huey, a certified financial planner in Naples, Fla.
Advisers may still think it's a bad idea to buy a highly volatile, sentiment-driven asset. The difference is rather than say, "Absolutely not," they may tell clients, "OK, but I warn you it's risky, so let's limit your exposure."
"My view on crypto has evolved over time," said Matt Sheers, a certified financial planner in Plymouth, N.H. "I wouldn't say I've become more bullish. What's changed is less about my conviction and more about the infrastructure."
As federally regulated exchange-traded funds hold bitcoin and other digital assets, the institutional custody enables investors to more easily weave crypto holdings into a portfolio. There's more oversight and transparency.
"That lowers the implementation barrier, even for advisers who remain cautious," said James Mayo, an adviser in Lakewood, Colo. "But I don't believe in crypto. I don't think it makes logical sense, and I don't proactively bring it up with clients."
A chartered financial analyst, Mayo acknowledged that crypto may appreciate if demand rises. But that's different, he said, from owning a productive asset that compounds over time.
He added: "I treat [crypto] as a speculative satellite position and generally limit it to a small percentage of the portfolio."
Sheers educates crypto-curious clients about other risk assets that offer more diversification and less volatility. If they insist on owning crypto, he might cap their exposure at no more than 5% of their portfolio.
"It should be sized small enough that a major decline doesn't derail their long-term financial goals," he said. "And I prepare them for a wild ride. I always ask, 'If it goes down 50% in the next few months, will you still want to own it?' "
The pullback in crypto valuations has actually increased Sheers's willingness to consider it for clients who show interest.
"I'm more comfortable discussing it during drawdowns rather than during euphoric rallies," he said. "When prices are down, conversations tend to be more rational and sizing decisions more disciplined" as opposed to impulsive, FOMO-crazed performance chasing.
Many advisers act as fiduciaries, meaning they have a legal and ethical duty to act in a client's best interest. This compels them to explain the risks of crypto and go the extra mile to educate clients.
"As a fiduciary, it would go against our duty to recommend investments we wouldn't choose for ourselves," said James Bryan, a certified financial planner in Edina, Minn. "In the end, crypto is an investment whose value depends on finding someone else willing to pay more for it. It's the 'Greater Fool Theory.' "
More: Here's how the Iran conflict may have helped crypto prices recover, even as stocks struggle
Also read: The 'smart money' fled software stocks after that viral AI doomsday report. Here's where it's going.
-Morey Stettner
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March 20, 2026 08:01 ET (12:01 GMT)
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