Cov hauv qab no yog qee txoj hauv kev los sib tham Daim ntawv ceeb toom tsis ntev los no Bitwise and VettaFi reveal that 56% more financial advisors will invest in cryptocurrency this year. The 2024 US elections results are the main factor.
Crypto prices surged in 2024, and regulatory clarity has increased. This has sparked interest among clients and advisors. In 2024 96% advisors answered client queries about crypto. This was the highest recorded level, and up from 88% of 2023.
Also, advisors’ allocation of crypto to client portfolios has doubled from 11% to 22%, in 2024. The most likely groups to use crypto were institutional investors (30%), Registered Investment Advisors(RIAs) (28%), and wirehouse agents (24%)
Advisors’ clients are also increasingly taking independent positions in crypto, with 71% investing in crypto independently of their advisors in 2024, up from 59% in 2023. They are also increasing the number of advisors’ clients who take independent positions in crypto. In 2024, 71% will invest independently from their advisors, up from 59% in 2023. “held-away”Assets represent an increasing opportunity for advisors to integrate cryptocurrency into larger wealth plans.
A total of 430 financial advisors responded to the survey.
The report portrays an industry that is growing. Advisors are more inclined than ever to make crypto investments. 19% plan to invest by 2025 compared to 8% in 2018.
The majority of those who have already invested in bitcoin plan to continue or even increase this exposure.
Political Momentum
Cryptography experienced a major turning point with the 2024 US election. The optimism generated by President-elect Donald Trump’s acceptance of digital assets and his proposal for a Bitcoin (BTC), strategic reserve, is a positive development.
Also, crypto-friendly candidates won key victories at the Congress level, tilting political terrain in the favor of the sector.
The report also highlighted mounting speculation over Senator Cynthia Lummis’ (R-WY) proposal for the US to purchase 1 million Bitcoins over five years, with 45% of advisors believing it will happen.
Reports suggest that the US entering the race for Bitcoin reserves could start a trend around the world. Countries like Brazil and Poland are already considering legislation similar to the US.
Remaining barriers
The challenges persist despite the growing interest. Volatility (47%), and regulatory uncertainties (50%), remain the two biggest barriers for advisor adoption. Regulatory worries have declined compared with previous years.
The fact that 65% of advisers are still unable to allocate cryptocurrency in clients’ accounts or are uncertain about it is a major obstacle.
In 2024, only 31% of advisors cited valuation concerns, down from 42 % in 2023. The fear of hackers is also decreasing, from 38% in the year 2022 to just 24% by 2024.
Shifting tactics
This report highlighted the changing attitudes of advisors towards crypto investments. As advisors are hesitant to expose themselves directly to crypto, the Crypto Equity ETFs (25%) continue as the top choice.
The popularity of spot crypto ETFs (22%) and diversified cryptocurrency index funds (19%) is on the rise, which reflects a rising interest in professionally managed options.
Reports show that advisors have been exploring sophisticated strategies. They are particularly interested in thematic strategies (26%), and buffered (24%) strategies. These approaches aim to mitigate crypto’s volatility and deliver differentiated returns.
It added that 67% believe Bitcoin’s price will rise over the next year, up from 52% in 2023. By 2030 40% predict that Bitcoin will trade for between $250,000 to $1 million. 10% expect it to exceed $1million.
The report also noted a growing conviction in Bitcoin’s long-term potential as a mainstream asset. In fact, 83% of respondents are confident that Bitcoin’s value will be higher than Ethereum’s (ETH) market cap within the next five years.
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