mlsanityData to 7 Oct 2026

Auditing Asset-Specific Preferences in Financial Large Language Models: Evidence from Bitcoin Representations and Portfolio Allocation

arXiv 2606.02528 ↗First posted 1 Jun 2026q-fin.GN cs.CY cs.LGcited by 1

Not on the map. Why?

Abstract (arXiv)

Large language models now power robo-advisors and trading agents, yet whether they carry built-in biases toward specific assets is largely untested. We ask three questions: do LLMs systematically prefer certain financial instruments; can an internal representation with causal leverage over those preferences be identified; and does that representation affect downstream financial decisions? We develop a three-level audit protocol and apply it to Bitcoin. First, a behavioral audit of nine frontier LLMs shows that Bitcoin's ranking among money-like instruments is frame-dependent: models place it around rank 5 of 8 as "reliable money" but near the top under crisis and autonomous-agent frames, and an attribute-swap experiment shows that rankings track functional properties, not names. Second, we open a model's internals: a search across thousands of sparse-autoencoder features in Gemma 3 identifies a dominant Bitcoin-selective feature. Amplifying it shifts the model toward the asset and suppressing it shifts the model away, even when "Bitcoin" never appears in the prompt. Third, we test financial consequences: amplification raises Bitcoin's portfolio share by 5.2 percentage points while suppression lowers it by 4.6 pp, with amplification reallocating within crypto and suppression cutting total crypto exposure. We characterize this as bounded behavioral leverage (leverage meaning causal influence over outputs, not financial leverage): an identifiable internal feature can be perturbed to move financial choices, but only within measurable limits. The framework links internal representations to external recommendations, validated with random controls and mechanism boundaries. As LLMs become autonomous financial agents, this is a first step toward a behavioral layer for emerging know-your-agent (KYA) standards: knowing what an agent prefers, and how far that preference can be moved.

Key facts. Cited by 1 paper in the map (data through 7 Oct 2026). Builds on 25 of its 56 references that are in the map. First posted on arXiv 1 Jun 2026.

Builds on

25 of 56 references.

References · 25

  1. 2023Steering Language Models With Activation Engineeringcited by 824
  2. 2023Whose Opinions Do Language Models Reflect?cited by 759
  3. 2024Gemma Scope: Open Sparse Autoencoders Everywhere All At Once on Gemma 2cited by 381
  4. 2024Jumping Ahead: Improving Reconstruction Fidelity with JumpReLU Sparse Autoencoderscited by 283
  5. 2023In-context Vectors: Making In Context Learning More Effective and Controllable Through Latent Space Steeringcited by 240
  6. 2023Large Language Models in Finance: A Surveycited by 223
  7. 2026Scaling Monosemanticity: Extracting Interpretable Features from Claude 3 Sonnetcited by 175
  8. 2024A is for Absorption: Studying Feature Splitting and Absorption in Sparse Autoencoderscited by 148
  9. 2024Analyzing the Generalization and Reliability of Steering Vectorscited by 130
  10. 2024Improving Steering Vectors by Targeting Sparse Autoencoder Featurescited by 86
  11. 2025SAEs Are Good for Steering -- If You Select the Right Featurescited by 74
  12. 2025Weight-sparse transformers have interpretable circuitscited by 40
13 more
  1. 2024Can sparse autoencoders be used to decompose and interpret steering vectors?cited by 19
  2. 2025Your AI, Not Your View: The Bias of LLMs in Investment Analysiscited by 16
  3. 2024AI as Decision-Maker: Ethics and Risk Preferences of LLMscited by 7
  4. 2025Evaluating and Aligning Human Economic Risk Preferences in LLMscited by 7
  5. 2025Steering Risk Preferences in Large Language Models by Aligning Behavioral and Neural Representationscited by 5
  6. 2025CryptoBench: A Dynamic Benchmark for Expert-Level Evaluation of LLM Agents in Cryptocurrencycited by 5
  7. 2025Depth-Wise Activation Steering for Honest Language Modelscited by 4
  8. 2025The Agentic Regulator: Risks for AI in Finance and a Proposed Agent-based Framework for Governancecited by 3
  9. 2025AgentFacts: Universal KYA Standard for Verified AI Agent Metadata & Deploymentcited by 2
  10. 2025A Financial Brain Scan of the LLMcited by 2
  11. 2026Artificial Intelligence and Systemic Risk: A Unified Model of Performative Prediction, Algorithmic Herding, and Cognitive Dependency in Financial Marketscited by 2
  12. 2025Can Large Language Models Capture Human Risk Preferences? A Cross-Cultural Studycited by 1
  13. 2026Tokens All the Way Down: A Money View of Decentralized Financecited by 1

Built on by

Cited by year (2026 to 7 Oct)

Citing papers per year: 2026: 1.

1 paper.

Similar, not cited

Close in wording, no citation either way

  1. 2026Replayable Financial Agents: A Determinism-Faithfulness Assurance Harness for Tool-Using LLM Agents
  2. 2024Behavioral Bias of Vision-Language Models: A Behavioral Finance View
  3. 2024INVESTORBENCH: A Benchmark for Financial Decision-Making Tasks with LLM-based Agent
  4. 2025Evaluating Binary Decision Biases in Large Language Models: Implications for Fair Agent-Based Financial Simulations
  5. 2026Representation Signatures and Risk-Feedback Alignment in LLM Trading Agents
  6. 2025Standard Benchmarks Fail -- Auditing LLM Agents in Finance Must Prioritize Risk
  7. 2026From Knowing to Doing: A Memory-Controlled Benchmark for LLM Trading Agents on Stock Markets
  8. 2026Behavioral Consistency Validation for LLM Agents: An Analysis of Trading-Style Switching through Stock-Market Simulation