SEC Proposes New Rule for Investment Advisers to Hold Bitcoin for Clients: Which Coins Will See Over $100 Trillion in Managed Funds First?

The SEC just opened a door that could funnel a slice of $100 trillion in managed funds into crypto, and the race to decide which coins get in first has already begun.

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The SEC has introduced a proposed crypto custody rule that may allow registered investment advisers to directly hold Bitcoin (CRYPTO:BTC) and other cryptocurrencies for their clients. Given that these advisers manage over $100 trillion, even a small shift toward crypto could channel significant funds into the market.

Until now, most investment advisers have refrained from buying Bitcoin in managed accounts because of strict custody regulations. The existing rules required the use of a qualified custodian without clearly defining who could hold a private key. If the new proposal is finalized, it raises an important question: which cryptocurrencies will see the first influx of adviser money?

The SEC’s Crypto Custody Rule Adds New Custodians for Advisers

Investment advisers responsible for client assets must typically engage a qualified custodian—a regulated bank or broker responsible for safeguarding those assets. These standards were designed for traditional investments like stock certificates, but the unique nature of cryptocurrencies, which are controlled by private keys, complicates matters. In fact, the SEC withdrew a 2023 proposal on custodial safeguards on June 12, 2025, leaving a gap until now.