Bitcoin, risk, and the future of wealth management
22nd August 2025
I have been working quietly on a longer project that I plan to publish by mid-2026: a book looking at where Bitcoin sits in the world of modern wealth management. It is not a “crypto hype” book. In fact, it is the opposite. My approach is to examine Bitcoin in the same way we would any other asset class, asking the difficult questions about how it fits into portfolios, what risks it brings, and what opportunities it may unlock.
Traditional portfolios have long been built on the back of Modern Portfolio Theory. Equities and bonds are the bedrock, with property, alternatives and cash filling the gaps. But when you look at Bitcoin through this lens, the usual rules start to strain. High volatility means that most models reject it outright. Yet, when you consider time horizon and how investors really think about risk, perhaps it is the old framework that needs updating.
The industry often focuses on the risk of taking on too much risk. What we rarely acknowledge is the other side of the coin: the risk of not taking enough. Sitting on the sidelines while new stores of value establish themselves is its own form of risk, one that can be invisible in a spreadsheet but painfully obvious over a generation.
The industry often focuses on the risk of taking on too much risk. What we rarely acknowledge is the other side of the coin: the risk of not taking enough. Sitting on the sidelines while new stores of value establish themselves is its own form of risk, one that can be invisible in a spreadsheet but painfully obvious over a generation.
Where does this leave wealth management? For me, Bitcoin is not just another speculative punt. It forces us to rethink diversification, value, and risk. It asks uncomfortable questions of existing financial theory, and it may well play a central role in shaping how portfolios are built in the decades to come.
The book will go into far more depth, with detailed comparisons to traditional asset classes and practical analysis of how Bitcoin can fit into portfolios. For now, this is a glimpse into the themes I am exploring. The goal is not to evangelise, but to scrutinise.
If wealth management is to remain relevant, we must ask whether the frameworks we use are fit for purpose in a world where Bitcoin is no longer on the fringes. the pace of cuts.
Pete