Today’s Crypto for Advisors newsletter is written by me! Join me as I reflect on the growth of the crypto industry. Then, Kim Klemballa from CoinDesk Indices answers questions on advisors’ minds when it comes to pricing and benchmarking the asset class in “Ask the Expert.”
I hope you enjoy our newsletter. Thank you for letting me be your steward. Thanks to all the amazing contributors who share their stories week after week. I look forward to where we will be in 2 years.
Webinar alert: Explore the digital asset market and ways to access the crypto asset class beyond bitcoin. Join Ric Edelman of DACFP, David LaValle of Grayscale Investments and Andrew Baehr of CoinDesk Indices for an informative Webinar on July 16 from 1-2 p.m. ET. Live webinar only. CE credits available. Learn more and register today.
– Sarah Morton
Two Years In, and Just Getting Started
Two years ago, I took on the role of editor for Crypto for Advisors at a pivotal moment. It was mid-2023, and the cryptocurrency industry was in the midst of a deep winter. The collapse of major lending platforms and the implosion of FTX had sent shockwaves through the markets. The U.S. regulatory climate was hostile, marked by enforcement-first tactics, and confidence was shaken.
But even then, the undercurrents of something bigger were impossible to ignore. Fast forward to today, and we’re standing on the edge of what Bank of America calls a “once-in-a-millennium transformation.” They’re not talking about memes or speculation. They’re talking about the reshaping of global financial infrastructure, economic models, and digital ownership — and it’s being driven by crypto.
An Ode to Bitcoin: The Genesis
“Bitcoin belongs in the same breath as the printing press and artificial intelligence.” — Bank of America:
Bitcoin, born in the aftermath of the 2008 financial crisis, created something revolutionary: a decentralized, fixed-supply digital currency. It belonged to no government, no corporation, and no central authority.
From there, a movement began. Early adoption saw students tinkering with GPUs, developers building wallets, entrepreneurs launching exchanges, and miners chasing cheap power around the globe. A technological and economic revolution took shape.
Today, we’re seeing bitcoin ETFs from the world’s largest asset managers — BlackRock, Fidelity and Grayscale being the top three by AUM — and even nation-state adoption as countries like the U.S. and UAE race to become global crypto hubs. It’s an unparalleled acceleration of financial innovation.
The Rise of Ethereum and Smart Contracts
Bitcoin sparked the fire, but Ethereum — and the smart contract innovation it introduced — brought utility, programmability, and the ability to tokenize everything: real estate, carbon credits, fine art, identity, equities, and even yield-generating protocols.
While Bitcoin and Ethereum dominate headlines, tens of thousands of digital assets exist. And while investing grabs the spotlight, blockchain is quietly transforming supply chains, intellectual property, finance, and more.
Public companies are adding crypto to their balance sheets. Over 140 public firms have announced bitcoin reserves. Exchanges like Coinbase and Kraken will offer tokenized equities, while retail platforms like Robinhood expand their crypto products. Access points are multiplying: direct-to-consumer platforms, ETFs (now in the hundreds), tokenized funds, and direct ownership. And the list keeps growing.
The Landscape Has Changed — Are You Adopting?
Only a handful of advisors were very early adopters but that’s slowly evolving. There’s broadening recognition of the opportunity — to support clients, protect relationships, and win new business. It’s becoming increasingly common to hear from advisors that they are winning clients simply because they’re willing to talk about bitcoin.
On the other hand, the lack of regulation, prohibitive firm policies, digital assets volatility behavior and overall uncertainty with a new asset class has caused hesitancy. Moreover, advisors have a lot to pay attention to —- and now learning a new — and always changing — asset class is added to the list! Despite all of this, clients want to access digital assets. Recent Coinshares survey data highlights that clients want the help of their advisors and expect them to be knowledgeable in digital assets. More than 80% of the respondents answered that they would be more likely to work with an advisor that offers digital asset guidance, and 78% of non-crypto investors say they’d turn to an advisor if crypto support were available. Notably, almost 90% said they planned to increase their crypto exposure in 2025.
A Call to Action
Blockchain is an infrastructure, crypto is more than an asset class and the technology extends well beyond investing.
The industry is maturing,regulation is advancing andthe world’s largest institutions are developing on blockchain. As U.S. Treasury Secretary Scott Bessent said recently, “Crypto is the most important phenomenon happening in the world today.”
You don’t need to be a crypto trader or blockchain developer. But if you’re a fiduciary — a guide, a planner — you owe it to your clients to understand what’s happening. Education is key.
In two years of curating this newsletter, I’ve watched sentiment shift from skepticism to curiosity to strategic integration. And we’re just getting started. I’m thrilled to be here with you on your crypto journey. Connect with me for ideas on future topics you’d like to see addressed.
– Sarah Morton, chief strategy officer, MeetAmi Innovations Inc.
Ask an Expert
Q. Why is the same digital asset priced differently on each exchange?
A. Equities “plug in” to an exchange, allowing for one, centralized price. Crypto, on the contrary, is “decentralized.” This means there’s not one “plug” to price a digital asset. While crypto prices are based on supply and demand (as well as other factors), each exchange operates independently and therefore prices can vary between different exchanges.
Q. How can I find reliable pricing data for digital assets?
A. There are many digital asset index and data providers. Look for pricing that (1) comes from a reputable and trusted provider with a proven track record in digital assets, (2) has a transparent and rules-based approach to construction, and (3) lays out thoughtfully constructed criteria for how the pricing is captured. The index methodology is incredibly important. For example, if selection criteria of an index included “trading on more than one eligible exchange” with eligibility thoughtfully designed, then in the case of the FTX collapse, FTT (the exchange token of FTX) wouldn’t have made it into the index. Thoughtful construction can rule out bad actors.
Q. Why are people using bitcoin to measure the entire digital asset landscape?
A. While bitcoin now accounts for 65% of the total digital asset market, there were times bitcoin was less than 40% of the market. One asset should not be a benchmark for the entire asset class. Diversification is key for institutional investors to manage volatility and capture broader opportunities. Effective benchmarking must serve multiple constituencies—enabling performance evaluation, supporting investment strategies, and setting industry standards for everyone.
Indices such as CoinDesk 5 (CD5), CoinDesk 20 , CoinDesk 80 , CoinDesk 100 and CoinDesk Memecoin were constructed to meet the needs of those looking to benchmark, trade and/or invest in the ever-evolving digital asset landscape.
– Kim Klemballa, CoinDesk Indices
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